ISLAMABAD: Farmers rejected wheat support at Rs1300 per 40kg for the 2014-15 crop by the government.
Finance Minister Senator Mohammad Ishaq Dar increased support price of wheat at Rs1300 per 40kg for the 2014-15 crop by the government. The decision has been taken to facilitate the farmers’ community in the country, said a brief statement issued by the Finance Ministry here. Finance Minister Senator Mohammad Ishaq Dar, in his capacity as chairman of ECC (Economic Coordination Committee of the Cabinet) approved support price of wheat. The government increased the support price of the wheat by Rs100 per 40kg that would lead to enhance the flour price in the country.
The previous price of wheat was Rs1200 per 40kg. The current decision would result in enhancing the price of basic food commodity of the country, the flour. Currently, flour price is already very high at over Rs40 per kg in different parts of the country, which would further surge after the government’s decision. The wheat-sowing season has already started in Sindh, with Punjab to follow. However, the farmers were anxiously waiting for an early announcement of procurement price. Sources informed that government has taken the decision of increasing wheat prices on the farmers demand.
Agri Forum Pakistan rejected the government’s decision by saying the wheat support price is much lesser than the demands of the farmers that would lead to compel the government to import the commodity, as domestic production would be reduced. “The decision of enhancing prices is not as per demands of the farmers, as the minimum support price of wheat should be Rs 1500 per 40 kg”, said Agri forum Pakistan Chairman Muhammad Ibrahim Mughal. He claimed that support price of wheat in international market was Rs 1460-1560. He appraised that targets being set by the government for wheat may not meet the growing population demand, which is increasing at 2.5 percent per annum. “Pakistan will need a minimum of 27.25 million tons of wheat for next year, whereas the target is 25 million tons,” said Ibrahim Mughal. He further remarked that cost of production is very high due to the higher prices of urea, diesel and electricity.
“The current decision would leave no other option but to import the substandard wheat from the international market due to the lesser production. The government will mix the substandard international wheat with the superior local wheat and sell it to the consumers”, Agri Forum Pakistan chairman added.
