As ProPakistani reported earlier, Corn was being smuggled across the border at marginal profits only to artificially jack up domestic prices so big hoarders could exit the market profitably.
However, Corn prices have dropped by as much as Rs. 200 per 40kg across Punjab in a week after witnessing a spike during the last two weeks. The unexpected drop comes as the government closed the Pak-Afghan Torkham Border amid deteriorating security conditions but also in part due to the recent push to curb the smuggling of essential commodities across the 2,000-kilometer-long border.
According to well-informed sources, the border closures are not limited to Khyber Pakhtunkhwa but a secret smuggling route near Dalbandin, Balochistan has also been closed and a military post has been established there.
“Cargos en route to these places have been returned and this is going to hit the domestic market. The traders that sold at the time were lucky but now as long as borders are closed and pressure is maintained, the market is expected to stay down” said a market consultant while talking to ProPakistani
But he added that it’s unlikely that official borders can stay close for long as the large population on both sides rely on trade for a living and it’s also to be seen whether the pressure on monitoring illegal routes is a permanent policy shift or a one-time event.
Corn is Pakistan’s second-largest crop being grown on 1.72 million hectares and responsible for 3 percent value-added agriculture GDP. Nearly 65 percent of Corn production is consumed by the Poultry industry which has Rs. 1,100 billion turnover and employs 1.5 million people.
But Pakistan has had excess production for the last few years and without any significant exports, dropping the profit margins for farmers and traders which is fueling the smuggling efforts of corn across the Afghan border. The government needs to complement these efforts by exploring new export destinations so the causes of smuggling can also be addressed and the true potential of the agriculture sector can be harnessed.
Source: Pro Pakistani