Backdrop for Current Wheat Shortage

PAKISTAN - Pakistani's witnessed a perfect storm scenario on wheat in 2007 with an overly optimistic wheat crop estimate.
calendar icon 27 December 2007
clock icon 2 minute read
A well-intentioned decision to lift the four-year wheat export ban to raise farm prices, severe weather conditions in the major world wheat production areas, and increased demand during Ramadan cause mayhem in the domestic market.

The GOP announced that they would import one million metric tons of wheat for December/January delivery to meet domestic demand and stem rising food inflation. In hindsight, lowering the official crop estimate should have had the same effect on farm prices as exports, while keeping more wheat within Pakistan.

Further Reading

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