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Editorial
inflation What
happens in Scraping
along interview The
man in the middle
Editorial Imran Khan and Nawaz Sharif (where on earth did Abrarul
Haq spring from?) are talking about issues in generalised terms —
inflation, loadshedding, corruption. They probably don’t know what’s
hurting the poor and the not-so-poor people of this country most. Today, the
people in this country can’t eat what they want to; they are not eating as
well as they used to. Today, a person holding a bag of vegetables is looked
at with as much envy as one holding a meat bag a few years ago. This is the stuff revolutions are made of. Remember
Marie Antoinette’s retort “Let them eat cake” and what followed. But
Khan and Sharif have failed to pick on it. Instead of food, people are fed reasons — one or the
other and sometimes together. Speculation in food had become familiar
because it was a pattern — a shortage of tomato followed by shortage of
onion and so on. And then came huge input costs as the excuse because of
energy and fuel prices. For two years running, it’s floods and their
aftermath and for as many years it’s the international food prices. For people here, all of the above cited reasons hold
true at this particular point in time. And every necessary food item has
gone out of reach. Result: poor people who spent a major chunk — around
60 per cent — of their income on food now feel the crunch. And then there
is the cumulative effect because there are other important heads they have
to cater too like the electricity bills. For a majority of poor people,
cooked vegetables and lentils are a thing of the past. Most of the time,
it’s chutney (green chillies or whatever) with roti. Food prices now pinch even the lower middle classes and
the middle classes; because there’s the private school fees and the house
rent and the utility bills. This is a free-for-all situation with the government
sitting as a silent spectator, allowing no regulation of any kind. If it can
step in to control the price of staple food like flour, why can’t it do
something about other things. Yes we know there’s Benazir Income Support
Programme but with the food inflation’s current status even that is
insufficient. Food inflation is huge and this is what we want to
highlight in today’s Special Report.
inflation For Pakistan, food inflation is not an issue but a
challenge. With greater number of mouths to feed every year and lesser
resources at their disposal, it’s not an easy task for the government to
meet the demand of food. The ever-widening gap between the demand and the
supply of food products puts a pressure on the prices of these commodities
and takes a heavy toll on people’s pockets. No doubt the supply issue is integral to this scenario,
but there are other factors also that are responsible for the hike in the
prices of edible products. Some reasons may be common for increase in prices
of different products and others only related to a particular product. Just
like reasons, suggested solutions are also diverse and need a comprehensive
understanding of issues pertaining to production, preservation and
distribution of different products. A comparative analysis of the current prices of food
products with that prevalent in a corresponding year in the past show a
significant rise in the prices of milk, meat, vegetables and staples, edible
oil, spices, pulses and sugar. Different reasons are cited for the increase.
TNS spoke with experts and stakeholders about what could the solutions be. Despite being the fifth largest producer of milk,
Pakistan is spending millions of dollars annually on the import of formula
milk to meet its milk demands. Though the country ranks high among milk
producing countries, the yield per animal is dismally low. It is one-third
of the yield of an Australian or New Zealander cow. Experts believe major reasons for low production are
consumption of inferior feed, non-professional farming and lack of efforts
at breed improvement. They suggest the feed has to be improved and farming
done on modern grounds. The practice of keeping cattle in small numbers in
congesting dens and feeding only of agricultural byproducts like straw,
cottonseed cakes (khal banola) should also be done away with. Pakistan Agri
Forum President Ibrahim Mughal suggests efforts at breed improvement through
artificial insemination and proper administration of vaccines and medicines
to the milk-producing animals to improve productivity and reduce mortality
among them. He says agricultural and dairy research has consumed
billions of rupees but results are not obvious. “I think the research
which is limited to office shelves and racks should be taken to the farmers
without delay.” Prices of vegetables, poultry, grains and pulses go up
and down but those which are always on the rise are those of meat. Once they
reach a level they retain it till they are surpassed. The reasons are many,
including smuggling of live animals and unregulated export of meat. But the
less known are that animals are not reared especially to obtain meat, says
Dr Asif Sahi, Project Director at Punjab Agriculture and Meat Company (PAMCO).
This results in the ever-increasing shortage of meat supply in the market.
Only those animals that are nearing expiration and are unable to produce
off-springs or milk or mate with females are brought into the market for
slaughtering. He says that around 90 percent buffalo calves are
slaughtered before attaining the age of one month as the farmer thinks them
to be a burden and consumer of buffaloes’ milk. As only female buffaloes
are allowed to grow up they are ultimately slaughtered, leading to loss of
milk they could produce. Besides, Sahi says, she-goats and sheep which have not
given birth before are slaughtered. In fact, he says, they are the nursery
and their slaughtering leads to loss of meat-yielding animals they could
have reared. According to Sahi, the farmers should be convinced about
discontinuing these practices and rearing calves till the age they attain
desirable weight. The Punjab government, he says, is offering subsidy to
farmers who are rearing calves to add to the meat supply. Special breeds
meant to obtain meat will have to be introduced. These breeds have a high
meat-to-bone ratio which makes them a viable option. PAMCO, he says, has
imported semen of this from abroad and started working on the project to
introduce such breeds. Unfortunately, in Pakistan, the post-harvest wastage of
agricultural produce is 30 to 35 percent of the total production.
Elimination or even reduction of this wasted amount can improve the
situation considerably, believes Ibrahim Mughal. Vegetables and fruits are
wasted due to unprofessional harvesting and cutting methods, lack of storage
capacity, improper packing and rough transportation methods. “We must
first save what we have and then go for increased productivity,” he says,
adding that the yield per acre will have to be improved as the available
land is limited and cannot be increased. Ibrahim says that one can have
little control over input costs but the output can be increased by
introducing best practices and through research. Mushtaq Ahmed, a vegetable trader in Badami Bagh Market,
believes speculation related to the supply of agricultural products is a
major reason for hike in their prices. When there are forces which can
release or hold back stocks according to their will, benefits of bumper crop
cannot reach consumers. Such mafias, comprising middlemen and their patrons,
should be tackled with strongly. Why is it so that the withheld stocks are
brought into the market as soon as the government decides to import these
products in high demand? Farmers across the country are interested in cultivating
staple and cash crops. Very few of them sow sunflower, rapeseed, canola etc
and that too during the interval between sowing of two major crops. A
concerted effort to set up vegetable oil industry and marketing channels can
help convince farmers to venture in this direction. This will also help
decrease dependence on imported oil, especially palm oil imported from
Malaysia. Cultivation of olive in Chakwal and Khushab districts
for extraction of oil is one such step in this direction. Sheikh Mushtaq Ahmed, a grain merchant in Akbari Market,
says unnecessary hassle in import of spices and pulses from the neighbouring
country should be removed. Whenever there is a shortage of these products
due to floods etc, the prices touch the skies and formalities for import
take ages to complete. “Everybody knows red chillies sown over thousands
of acres have been destroyed in Badin. But what they don’t know is that
the government is not going to import it from India before the time when it
is expected to reach markets,” he adds. No doubt the dependence on regional trade has to be
increased in order to ease the supplies of these products. Recently, around
40 agriculture experts of the SAARC countries participated in a meeting in
order to set up SAARC Agriculture Centre with the objective of increasing
productivity of pulses in the region. They observed the production of pulses
including masoor, moong, maash, rajmah and khesari is high in these
countries, especially, but they are importing them from countries like
Turkey and Canada. Promoting mutual trade will bring down the cost of
transportation as well as the invoice value. Sugar, which was once declared a luxury by a ruling
party member of the parliament, is one of the most manipulated edible
products. Targeted by regulators for cartelisation sugar mills owners, many
of whom are influential political leaders, had their say and succeeded in
setting prices of their choice on many an occasion. Experts believe the
cartels have to be broken and negative propaganda against import of sugar
from countries like India in times of need be countered. The campaign
against Indian sugar for being rich on harmful phosphorus content was just
an attempt by the cartels to keep things under their control, they believe.
What
happens in Eighty-year-old Parveen Kausar spends most of her time
recalling the good old days when she could eat everything and in good
amounts. “Grains, vegetables, meat, milk and fruit, everything
was available at cheap rates,” she says in a trembling voice. “The food
was of good quality, pure, and readily available.” Kausar, part of a family of 10, lives in Khan Colony, a
low class (not exactly a slum) neighbourhood, administratively under
Lahore’s cantonment board. The colony comprises upto 500 houses with the
majority living on rent. It consists of parallel streets alongside the
railway track with the posh Gulberg on the other side of the track. The 50-year-old locality was called Muft Pura (a place
for free) soon after the creation of Pakistan when poor people started
occupying this abandoned piece of land alongside the British-era constructed
railway track. Later, the army took over the land, making it part of the
cantonment board-governed area. Muft Pura streets are now divided into three
small localities: Hasnain Abad, Khan Colony, and Fateh Abad. Majority of the people of the locality are unemployed,
daily wagers or labourers in different factories of the city. Some of them
do small businesses in rented shops. “Most of the women of the locality work in posh house
and bring leftover food from the houses where they work as maids,” says
Muhammad Hanif, 65, a labourer and old resident of the colony. “We eat mutton and beef in dreams only,” he said,
adding, “The situation was a bit better till two years ago. Everyday is
getting worse. Ten years back, we used to have meat or beef twice a week and
now it’s almost once in two months, especially when we have guests at
home. Most people in this locality cannot afford prices of food, meat,
grains, and fruit.” Khan Colony is one of the thousands of such poor
localities in the poverty-ridden Pakistan. According to the United Nations
World Food Programme (WFP), more than 48 percent Pakistanis are facing food
insecurity. High food prices have significantly worsened the consumption
patterns of such a basic necessity. Shopkeepers selling grocery, essential items and chicken
say that the buy capacity of the people is decreasing day-by-day.
“Customers who used to buy the things up to Rs 10,000 a month are now
purchasing up to Rs 5,000, while the people buying things up to Rs 5,000 are
almost nowhere. They are buying small portions of sugar, oil, tea, milk,
yogurt etc,” says Muhammad Azam Butt, a general store owner who is running
the shop for more than 10 years in Khan Colony. Muhammad Farooq, 30, having two children, is running a
chicken meat shop for the last one year and says that the number of
customers is decreasing gradually because of non-affordability. “In last
two days, I have sold only 21 kilogramme chicken in this big locality.”
Farooq, who used to run a meat shop in another area of Gulberg, left that
business because of decreasing sale. People are not buying meat anymore, he
says. “The future of the poor people living in localities
like Khan Colony is dark. Food is going out of their reach,” says Hanif,
adding, “I know many families in the area who do not eat or cook for days
and they have to beg.” “Prices have increased highly in the last few years
and the reason is not their shortage or non-availability but lawlessness.
Tomato was Rs 60 per kg a week ago and now they are Rs 200 per kg,” he
gives an example, saying this is poor governance and lawlessness. “Nobody
is controlling the mafias in the business in Pakistan. This is just like
might is right and people are helpless.” Many of the people of the locality seem frustrated and
disappointed over the situation believing the situation will be worse in the
coming years. “We have no solution to these things. We don’t know what
our children will eat in future,” says Muhammad Mumtaz, a small scrap
dealer. “We just to want to go in a protest rally and die in a blast to
get rid of this situation.” vaqargillani@gmail.com
Scraping
along Going home after a tough day at school, any
nine-year-old would want to be welcomed by some good food but for Danish
things are different; he has to be content with whatever his mother and
father can afford in these times of food inflation. Danish is not the only child in the family of six; he
has three elder siblings who have the same feelings. But, for 38-year-old
Shaheen, children’s craving is not important as much as getting enough to
eat. “If I start making fancy dishes for them I’ll end up
with nothing,” she says. Shaheen is a domestic worker, belonging to the lower
strata of society. “To make a simple vegetable dish I’m spending Rs
300-400 daily, that is if you count all the ingredients. We are six people
in the family and 2kgs of dry vegetables are sufficient for a day,” she
says. Similarly, they can’t have enough money for rice and
lentils (daal chawal). Gone are the days when daal was a poor man’s meal.
“Today, it is for the influential people. Chana daal was for Rs 15 per
quarter kg three years back, now it’s for Rs 40. And, it is considered to
be the cheapest of all daals,” she says, with a straight face. Shaheen earns Rs 3,000 a month and her husband is an
electrician whose monthly wages total up to Rs 12,000. The family spends Rs
7,000-8,000 per month on ration and essential grocery items. Shaheen says
that they don’t have much left to buy fruits. “Not that I don’t want
my children to have fruits but with a major proportion of our income going
into the daily eatables, I can only buy us fruits once a month. “Three years ago, this was manageable within our
budget. I would buy vegetables for Rs 100, not any more.” Shaheen’s youngest son Danish and eldest child Shabana
both caught dengue fever recently. According to her, there was no cash in
hand to provide for the ailing children’s nutrient deficiency — “no
apples, bananas, milk and eggs. I had to borrow money from someone in order
to feed them.”
interview The News on Sunday: Spending on food items has increased
considerably in our monthly budgets, especially in the last couple of years.
What are the reasons? Abid Qaiyum Suleri: There are many reasons for food
price hike in Pakistan. However, to me, the primary reason is inefficient
governance that fails to ensure consistent food supply as per the demand of
consumers. Increase in prices of agricultural inputs, increase of cost of
transportation, damage to physical infrastructure limiting the supply of
food products, hoarding and cartelisation (especially in case of sugar) and
smuggling of food grains and live animals to neighbouring countries are some
of the other factors leading to food inflation. But again, all of the
abovementioned issues could have been tackled through better government
initiatives at the local level. Restricted or uncertain physical supply of food triggers
panic buying. Those who can afford to pay try to buy beyond their immediate
requirement even at higher prices. This further encourages hoarders to sell
at a higher price and the vicious cycle continues till the supply becomes
stable. TNS: Despite being an agricultural country, little seems
to have gone into our research on ways to enhance per acre yield, why? AQS: Our public as well as private sector investment in
agriculture research and development has sharply declined over the last many
decades. Lack of coordination and integration between agricultural
universities, agricultural research centres and agricultural extension
departments led to a situation where everyone was working in their own ivory
castle. We as a nation took a quantum leap from being an
agriculture-dependent economy to services sector led economy. However, we
ignored the fact that the services sector while contributing to the GDP
cannot absorb illiterate and semi-skilled labour force. This institutional
and policy neglect of agriculture not only led to stagnant agricultural
productivity but is also a major factor behind turning of agricultural lands
to unplanned towns and peri-urban slums devoid of basic civic amenities.
This situation has turned more grim due to climatic and seasonal variations,
thus affecting the per acre yield. TNS: What is the impact of food insecurity on the common
man and how does it affect our overall economy? AQS: There are four levels of securities: individual,
national, regional and global. All of them are mutually non-exclusive and a
must for each other. Unfortunately, half of our population is food insecure
(as per the SDPI-WFP joint study 2010). This segment of population with
massive individual insecurity tends to resort to extreme and extraordinary
behaviour. Some of them reduce their meal size, others shift to less
preferred diet. Still others prefer to feed the earning family members at
the cost of women, elderly people and children in the family. At the societal level, some of these insecure
individuals protest for basic amenities such as an uninterrupted supply of
electricity, gas and water; resort to industrial actions (which may turn
violent). Or, they are forced to sell their kidneys, even sell their
children and resort to various other criminal activities such as theft,
burglary, robbery and kidnapping for ransom. Some force their women into
prostitution and children in child labour. In worst cases, people commit
suicide and/or kill their family members. A few also become prey to militant
groups and blow themselves up as suicide bombers. The abovementioned
behaviour not only promotes intolerance and violence but also leads to
socio-political instability which affects economic growth and prosperity. TNS: Are we in a position to cope with the food shortage
created by the floods of 2010 and the present one in Sindh? AQS: Fortunately, wheat, our staple food, was not much
affected by two successive floods. However, food security does not mean
ensuring wheat security only. Floods have a massive impact on people’s
socio-economic access to food. Survivors of floods lost their livelihood,
their reserved food, livestock and shelter. Strong social safety nets and
innovative policies can not only help to restore people’s livelihoods but
can also improve their socio-economic access to food. Food distribution in the short run and the distribution
of agricultural inputs in flood affected areas by the various national and
international organisations did yield a positive result and should be
continued in the flood affected areas of Sindh. Let me again reiterate that ours is not only a food
crisis, we are also faced with a severe governance crisis and I don’t see
any way out until the crisis is resolved. TNS: Is kitchen farming a viable option in our part of
the world? AQS: It is a very viable option, especially in order to
ensure the smooth supply of perishable kitchen items such as vegetables etc.
However, it would only work if our agricultural extension services are able
to deliver. On the Mesoscale, we had the provision of farm houses
around Islamabad (and now they are a status symbol around all mega cities).
The concept of farm houses in Islamabad was to provide fresh and
uninterrupted supply of food to urban consumers. However, they are being
used as part places of retired generals, senior bureaucrats and politicians.
We need to revert to the original concept of farms houses and kitchen
gardening to remain food secure in a rapidly changing world. TNS: Why have we not been able to get rid of the middle
man? Do we have an alternative? AQS: In the absence of functional public sector
institutions, middle men are playing a crucial role in sustaining our
agricultural sector. They provide loans to buy inputs for the next crop
without collateral, thus function as a micro-finance institute. They buy
standing crops, thereby offering insurance to any seasonal damage. They
provide storage facilities. They help in grading and marketing. They take
care of important documentation for export (in case of exportable
commodities). They also take care of road to market connectivity. Perhaps,
we need to enhance the bargaining power of farming communities so that they
don’t get exploited by the middle men. I would say that if we cannot
provide farmers with loans without collateral, if we cannot offer them farm
insurance, storage and grading facilities, and connectivity to markets then
it would be better to institutionalise and formalise the role of middle men. TNS: In a free-market economy like ours, do you think
the government has a role to play in keeping the food prices under control? AQS: Free-market economy works where the institution of
market is functional and the rights of consumers are protected.
Unfortunately, we lack in both these prerequisites. The government should
ensure a smooth functioning of markets and infrastructure farm to market
connectivity, discourage malpractices such as cartelization, ensure that
producers and marketers meet the basic requirements of quality standards. On
top of it, the prime responsibility of the government is to ensure the
protection of consumer rights. If the government takes these measures, the
prices of food would be automatically under control. TNS: Have we been able to establish a link between the
farm and the industry so that they can complement each other as is the case
in some other countries of the world? AQS: Not yet. Unfortunately, we could never think of
value addition in food chain. Pasteurised milk, local sausages and fruit
juices are some of the recent examples but there is a lot of potential,
especially in fruits/vegetables, cereal/flakes, dairy items and meat sector
where linking industry and agriculture would not only ensure food supply but
also increase choices for consumers. TNS: How do we compare our agricultural situation with
that of India, since it has a huge population to feed? AQS: In India, the green revolution followed the white
revolution (milk and diary products). The situation is not ideal there too
when it comes to food security. Their small farmers are heavily indebted and
many are forced to commit suicides due to financial hardships, but the good
thing is that their government is investing in agricultural sector.
Fortunately, the word cooperative agriculture did not get scandalised in
India and that is one of the secrets why they are able to feed 1.2 billion
people. Pakistan can learn from India’s innovative ideas like free school
meals and minimum employment guarantee schemes to overcome the problems of
socio-economic access to food. The interview was
conducted via email
The
man in the middle Mian Javed, 55, wipes his grey moustaches with the back
of his hand which then lands on his protruded belly and rests there for a
moment. He contemplates for a moment with his eyes closed, facing the sky
and lips murmuring without making any audible sound. The trance ends soon enough as he lifts his white,
starched kameez to get hold of the pack of currency notes resting in the
fold of his belly. Without counting them, he throws the pack towards Abdul
Majeed, a 60-year-old potato farmer who catches it without going amiss and
holds it close to his chest for long. The old man is desperate to start sowing seeds in the
four acres of land he has just got on contract. Every passing day without
progress means accumulated loss to him as it reduces the time at his
disposable to reap a crop and get returns on his investment. Majeed tried to raise money for basic inputs like
fertilisers, seeds and pesticides and break loose from the bond he always
had with the middleman but could not succeed. Everyone he approached asked
for guarantees and security deposits and showed concerns about the situation
which could arise in case of loss to crop due to weather or disease. Unable to satisfy them, he has to once again turn to
Javed, his long-time companion and saviour. Things work out smoothly and the
cost of inputs is calculated with mutual consent. The only paper work
involved is related to estimates about the yield and the time it would take
for the crop to be ready for harvest. What would Majeed get out of the whole deal? He will
have a full say in determining the price at which the farmer will be ready
to sell the produce to him. This is no exploitation, says Majeed, who claims
to calculate the price after keeping a sufficient margin for the farmer.
“It’s totally Islamic to get returns on investment which in my case is
totally pure as there is no interest involved.” His assertion is challenged by many who are
uncomfortable with the idea of pre-selling a to-be-produced crop at a price
decided beforehand. The price should be market-driven and at par with the
one offered in the open market, they say. But Majeed has his own point of view: “What I am
making is an investment and not a loan.” The farmers, he believes, also
prefer this agreement as they are unable to fulfill the requirements of
agricultural loans and pay back principal amounts and markups in case of
catastrophes. Majeed says land revenue officials throw them in lockups
on mere default on installments but the middlemen work out solutions through
collective wisdom. Small farmers, he says, need them the most as they are
unable to secure harvesters and trolleys etc to harvest and move their
produce to the markets. They are also unable to pay the commissions charged
by the aarhti (commission agent) and the labourers loading and offloading
the stock. Yield of two acres land needs the same trolley for
transportation that can carry the crop produced over ten acres. That’s why
small-time farmers sell off ready crop and save themselves from all other
hassles. Majeed denies working as front men for big-time
vegetable dealers who can control the flow of otherwise perishable
agricultural products to the market. “There may be some but I am not,”
he erupts. “These dealers have the resources and investments to hold back
the goods in cold storage houses etc. I waste no time in taking fresh yields
to the market.” Calm and composed for most of the time spent with this
scribe, he gets irritated on the questions about middlemen being branded as
exploiters. In a high tone, he challenges the farmers to go and avail other
options available to them. “There is none other than us. They come to us when
they need money to marry their girls off, celebrate childbirths or feast the
mourners after the death of a near one.” The money is adjusted in
agricultural investments over longer periods of time without putting any
extra burden on them. “Is this the
role the exploiters play?” he asks. — Shahzada Irfan
Ahmad
On
top of the world The average inflation rate in Pakistan between the years
2003-2010 was 10.15 per cent, reaching a historical high of 25.33 per cent
in August 2008 and a record low of 1.41 per cent in July 2003. Food and energy, which impact the poor the most, are the
main characteristics of recent inflation in Pakistan. According to the data provided by the State Bank of
Pakistan, food inflation was registered at 28.5 per cent in 2008-2009, but
gradual withdrawal of subsidies and other post-budget initiatives of the
government after that resulted in a sharp rise in gas and petroleum prices.
It is believed that it has crossed the 40 percent figure, the highest ever. The most common ingredients of our traditional food
basket such as wheat flour, rice, vegetables, pulses, meat, milk and sugar
are at the top of the inflation index in the country. According to the
annual average wholesale prices of commodities data released by the
government of Pakistan, the price of 10 kg wheat flour bag has risen to Rs
300 from Rs 138 since 2006-07 and that of 40 kg basmati rice has reached Rs
3,150 from Rs 1,585 over the same period of time. The prices of pulses,
vegetables, meat and milk have also doubled since 2006-07. Interestingly, experts believe the gap has increased
between the availability of food and its affordability. Food is available in
bulk in our markets but affordability is a big issue. At the same time, it
needs to be understood that food inflation is expected to impact poor
households of rural and urban areas differently. The urban poor are the
worst hit by food inflation. There are some common reasons for inflation: continuous
increase in agriculture input prices, withdrawal of subsidies, sharp
increase in the prices of petrol, diesel, gas and electricity, devaluation
of Pakistani rupee, absence of regulatory bodies to check the prices of food
commodities and lack of intra-regional trade are the most common factors
responsible for high food inflation in Pakistan. Wheat Wheat prices have seen an upward movement in the
international market since 2006-07, that obviously affected the Pakistani
market also. But a sharp increase in support price of the commodity, on the
part of the government, during the year 2007-08, is a major contributing
factor in increase in prices of wheat flour. Smuggling of wheat flour from Pakistan to Afghanistan
and Central Asian states is another factor for its price increase in the
local market. Besides, the inter-provincial disparity of wheat flour prices
contributes to ‘unauthorised’ movement of the commodity from one
province to another, resulting in its price increase. There are other minor factors for the increase of the
price of wheat flour in Pakistan, such as the overuse of wheat in poultry
feed. Vegetables All vegetables are considered perishable commodities.
Over-urbanisation around the big cities over the years has contributed to an
increase in prices of vegetables especially in urban areas. The huge farm
houses, built around the only planned city of Islamabad and originally meant
for providing fresh vegetables and milk to the city dwellers, are now used
basically by the elite. Flash floods in 2010 and 2011 that ruined the road
infrastructure — affecting a smooth carriage of vegetables from small
villages to big cities — have only made the process more time — and
resource — consuming. On the other hand, power outages have contributed to
decreasing the efficiency of cold storages, with the result that perishable
commodities cannot be kept for use for a long time. Meat Smuggling of livestock to Afghanistan and beyond is one
major reason for the increase in prices of meat in the local market. Over
the last three years, the price of mutton has increased from Rs 250 per kg
to Rs 500 per kg whereas beef stands at Rs 300 per kg compared to the
earlier of Rs 150 per kg. Live animals were exportable till July 2011 when the
government put a ban on this. Pakistan exported 153,543 animals during the
year 2010, which led to an increase in the export of meat by 15 per cent.
Exported animals included 48,680 cattle, 50,000 buffalos, 54,716 goats and
147 camels to Arab and Central Asian states including Afghanistan. It is
amazing that a country which lost 1.5 million animals during 2010 floods
took a year to place a ban on the export of meat and livestock. Milk Pakistan is said to be the fifth largest milk producer
in the world while it may be on top of the world’s list as far as the
prices of milk and its products are concerned. Smuggling of animals is one important reason for the
increase in prices of milk whereas the development of processed milk is
another. Companies buy milk in bulk from different areas on low prices and
sell it on high prices. So far there is no regulatory body in Pakistan to
look into the prices of pasteurised milk. Pulses and Sugar Cartelisation of sugar mill owners and importers of
pulses are some of the major reasons for the price hike of the commodities
in the local market. Pakistan imports most of its pulses from Australia,
Canada and Myanmar. In 2008, the government imposed a condition of 35 per
cent LC (Letter of Credit) margin on the import of pulses, making it
difficult for local traders to import the commodities that resulted in the
increase of their price for local consumers.
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