THIS is with reference to the article `Wheat an end to federal crutches` (B&F, Feb 17). The recent government decision to end support with regard to wheat prices appears to be a step towards market efficiency. However, it is essential to consider the broader implications of the decision, and the said article did raise a few concerns in this regard.

The fact of the matter is that deregulating the wheat market has the potential to foster a more competitive and resilient agriculture sector. First, removing support prices and opting for direct procurement can encourage farmers to diversify and innovate.

Dependence on government interventions has historically stifled creativity, leading to inefficiencies and complacency.

By allowing market forces to determine prices, farmers will have stronger incentives to adopt modern farming techniques, optimise crop yields, and further explore alternative crops that may offer higher returns.

Second, the claim that small farmers will suffer from this policy overlooks the potential benefits of the involvement of the private sector. With government procurement often marred by corruption and inefficiencies, private companies can provide more transparent and effective solutions.

For instance, private investment in storage facilities can help mitigate the risk of price volatility, and ensure that small farmers receive fair market prices for their produce.

Furthermore, the ongoing argument that deregulation would lead to market manipulation by well-capitalised players fails to account for the role of regulatory frameworks and authorities meant to ensure fair competition in the market.

Properly implemented regulations can prevent monopolistic practices andensure a level playing field for all relevant stakeholders.

While the transition to a deregulated wheat market may pose initial challenges, it also offers opportunities for increased efficiency, innovation and resilience. By embracing market-driven policies, Pakistan can build a more sustainable and dynamic agriculture sector, benefiting both the farmers and consumers in the long run.

Shoaib Ahmad Karachi