Govt mulling hike in wheat support price

The government is actively considering a proposal to increase the support price of wheat to Rs600 per 40kg from Rs510 fixed by the last government.

The decision, if taken promptly, will settle the unrest in the wheat belt of the country and kick-start the process of procurement for the required stocks of the key food crop. These stocks are crucial for ensuring a steady supply of the commodity to the market to ward off the danger of its shortage.

Sources in Islamabad confirmed that an announcement in this respect was likely next week. The current international price for 40kg wheat is said to be over Rs1,100.

"We have recommended an increase in the support price of wheat for procurement, raising it to Rs600 per 40kg from Rs510 announced by the former government," said Sartaj Aziz, former finance minister and PML-N leader, when reached by Dawn for his party's position on the issue.

"We have demanded the support price of wheat be raised to Rs700 as the cost of input has increased dramatically over the past few years," Qmaruzzaman Shah, president of the Chamber of Agriculture, told Dawn.

Mr Aziz felt that prices of essential food commodities should not be allowed to rise beyond the buying capacity of the less-privileged segments of population.

"If we allow the international price for wheat, the wages will have to be increased subsequently as at the current level of minimum wage it will not be possible to sustain a family if flour price rises above Rs16 per kg," he said.

"By keeping the wheat support price at such a low level the government is creating scope for rent seekers, hoarders and smugglers. You are depriving the farming community of their due premium and the final beneficiary will not be Pakistani consumers but people of bordering countries. The local consumer will still be forced to buy expensive atta because much of the crop will find its way to foreign markets," Qmaruzzaman Shah told Dawn.