Presentation of individual Research paper:

By: Adnan khan (Naib Tehsildar)

92nd pre-service course for Tehsildar & Naib
Tehsildars
Topic:
“Price-hike of Edible commodities – A critical analysis of
price-fixation and Enforcement in Khyber Pakhtunkhwa.”
 Statement of problem:

Price hike is an important factor which affects the daily life of each and every individual. The availability of edible
commodities on affordable prices are desirable. As modern world is in the grip of inflation the effects of which have spelled
to almost all the countries across the globe. The availability of edible commodities on affordable prices is a big challenge.
Cont..

There are various factors which affects the essence of this whole endeavor.
Some of the elements are the delay in the meetings of the district price review
committee, price fixation without proper preparation, Non-cooperation by the
stakeholders, the presence of hostile elements such as cartels, hoardings, and
smuggling. It is important that all these factors shall be brought in unison so
that the people are facilitated and an effective and efficient mechanism is put
in place.
Literature Review

 1-Khan, Aamir Shafaat. “Devaluation, Costly Diesel Hit Commodity Prices.” DAWN.COM, January 31,
2023. https://www.dawn.com/news/1734531.

 2“Performance Management & Reforms Unit.” PMRU. Accessed March 15, 2023.
https://pmru.kp.gov.pk/.

 3- “Merged Areas Governance Project: United Nations Development Programme.” UNDP. Accessed
March 15, 2023. https://www.undp.org/pakistan/projects/merged-areas-governance-project.

 4- User, Super. Competition commission of Pakistan - :: 29 October 2022. Accessed March 16, 2023.
https://www.cc.gov.pk/index.php?option=com_content&view=article&id=643&Itemid=137&lang=en.
Research Methodology

 Both qualitative and quantitative methods of research have been used.

 The existing demand and supply mechanism of edible commodities in the
market have been studied.
 The laws which regulate the supply and monitoring of edible commodities
have been cited.
 Factors responsible for price-hike and lacunae in the market monitoring have
been identified
 An efficient way-forward for market regulation have been suggested.
Main sources of Edible commodities

 The major crops produced in the province are wheat, pulses, potato, onions
and garlic.
 However, their share in national area and production remains minimal.
 Wheat: Pakistan is the 8th largest producer in the world and 3rd largest in Asia
in area wise.
 Wheat production: 25 million tons annually. whereas per capita consumption
is 110/kg
 Wheat requirement of kp 5 million tons, local production is 1.4 million tons,
wheat deficit is 3.6 million tons.
 Kp govt purchases 1.2 million tons, whereas private sector procures 2.5
million tons

Pulses The total production of gram has also showed a decline from its highest
value of 34.5 thousand tons in 2004-05 to 20 thousand tons in 2019-20.


Garlic kp is the top producer of garlic in the country since last two decades. At
the district level, the assessment has shown that swabi, Nowshera and kohat are
the major garlic producing districts.

Onion Kp ranks third in onion production as Punjab and Sindh are the major
producers.
The major onion-producing districts in kp are Swat, Dir Lower, Malakand, Dir
Upper, Charsadda and Chitral contributing 80 percent of onion production in
kp. Swat alone is contributing approximately 51 percent in total onion
production in kp.
Demand and supply chain of Edible
commodities
Supply chain of fruits and vegetables:
In Pakistan per-capita consumption of fruits and vegetables is low as compared to
USA, Europe, central Asia. (Riaz Haq, defence.pk)
 Stakeholders of the supply chain:
 Contractors or Arthis who pre-purchases the produce from growers
 Commission agents who transport the produce
 Whole-sale and Retail dealers.
 Large scale growers usually perform all these functions themselves.
 Supply-chain of wheat, pulses and rice etc.
As indigenous production of these commodities is inadequate. These are
transported from Punjab, Sindh and are imported as well.
 Food department KP is the key stakeholder in buying wheat from the growers
as well as Punjab, Sindh, and PASSCO (Pakistan agriculture storage and
services corporation limited)
 Factors which affect prices of edible commodities:
 Factors which are responsible in the short-run:
 Political instability/conflicts and natural disasters, like Russian-Ukraine
conflict and the pandemic of COVID-19. The economic stalemate and the
devaluation of money.
 Factors affecting price-inflation in the long run:
 Government foot-prints in the market of edible commodities, such as the
support-price and procurement of wheat by the government. support price of
sugarcane.
 Discourages market competition.
 Fixing canal water prices at negligible level favors water-intensive crops
(sugarcane and rice) instead of cotton, fruits and vegetables.
 Low spending in research and development:
 In Pakistan additional production is achieved through expansion which has
reached its maximum limits. Further growth is only possible through
innovation and adoption of technology.
 Investments in infrastructure:
 Investments in infrastructure, such as transportation and storages facilities
are very limited.
 It improves supply-chain, reduces dependence on imports and mitigates the
price-hike due to hoarding and price-manipulation.
 Storage facilities are vital to the provision of fresh and perishable
commodities.
 Price fixation of edible commodities at federal and provincial level
 Economic coordination committee (ECC) determines pattern and growth of
agriculture and industry. It watches price situation to ensure stability of
prices of goods used by the common man.
 National price Monitoring committee (NPMC): This committee is chaired by
the Finance minister to review the prices of essential commodities. Its is
assisted by Pakistan the Bureau of statistics. It maintains sensitive price
index (SPI), and coordinates with the provinces.
 The competition commission of Pakistan (CCP): It is an independent quasi-
judicial body. It prohibits the abuse of dominant position in the market by
discouraging cartelization. It conducted a study in which suggested to shift
focus to other crops, discourage protectionism, highlighted agricultural
financing and E-commerce.
 Price-fixation at the provincial level:
 Food department as a stakeholder: It collects data on daily and fortnightly
basis and shares it to the provincial and federal government.
 District tier of the government and price-fixation:
 Deputy commissioner chairs the District price Review committee (DPRC), the
district food controller of the district acts as secretary of the committee.
 Directorate of crop Reporting services since 2019, Bureau of statistics Khyber
Pakhtunkhwa monitor prices of essential commodities.
 Market monitoring by various departments:
 Food department & district administration: under Food stuff control Act
1958 and Anti-profiteering and hoarding Act 1977
 Consumer protection council under the 2015 Act: Through its Assistant
Director and inspectors at district level.
Analysis of price-fixation in KP

 Non-serious approach by the price-fixation authorities

 Daily price-fixation at fruit and sabzi mandy
 Lack of coordination among different departments in monitoring
 Non-cooperation by stakeholders, trade and shopkeeper’s unions
 Lack of proper data for price-fixation and monitoring process
 Hoarding and smuggling due to price differences, tax and tariff differences,
limited legal trade, cultural and Ethnic ties, weaker Law-Enforcement,
political Instability.
Conclusion and Recommendations

 Price-fixation is very important function, which is affected by global factors

such as politics/energy/pandemics and disasters
 Encouragement of private sector is very necessary
 Regular and well-coordinated meetings of (NPMC), (DPRCs) are very crucial
 The roles of PBS and CCP are necessary for data provision and open
competition.
 Multiple market regulators should be replaced by one but efficient regulator
 Hoarding and smuggling is a very serious issue
 Duty roster should be strictly implemented for daily fruit and vegetable price-
fixation
 Comparative analysis of prices must be based on facts and figures.
 Government should focus on food security by increasing agricultural
productivity and sustainable farming.
 The government should digitize this whole mechanism on federal, provincial
and district level.
 The government should monitor the availability of edible commodities quite
regularly and there should be no leniency for the hoarders
 The Government should make stringent laws and complete border-fencing
with Afghanistan to discourage smuggling
Thank you