Govt likely to raise wheat, sugarcane support prices

Wheat price may be increased to Rs1,400 per 40 kg

LAHORE: The federal government has decided to increase support prices of wheat and sugarcane after a gap of six years and has completed consultations with all provinces in this regard, sources say.

The decision was taken while keeping in view the economic problems faced by farmers and the rising cost of farming.

According to sources, it is highly likely that the support price of wheat will be increased to Rs1,400 per 40 kg from the current Rs1,300 per 40 kg while in Punjab the sugarcane support price is expected to be enhanced to Rs200 per 40 kg from the existing Rs180 per 40 kg.

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Keeping in view the problems and recommendations of farmers and representatives of the flour mills industry, the Pakistan Tehreek-e-Insaf (PTI) government is considering fixing next year’s wheat procurement target at up to 4 million tons.

Sources in the federal government told The Express Tribune that the centre had not increased support prices of wheat and sugarcane since 2014-15. They pointed out that during the period there had been a considerable increase in the cost of electricity, diesel and agricultural tools coupled with the rise in cost of crop cultivation.

Since the PTI came to power in August 2018, there had been persistent pressure from the farmers on Prime Minister Imran Khan and his close aide Jehangir Tareen to raise the support price of major crops including wheat and sugarcane. The federal government had enhanced the support price of wheat in 2014-15 to Rs1,300 per 40 kg from Rs1,250 per 40 kg. This was the last increase in the support price.

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Sources added that according to the estimates sent by Punjab to the federal government, the support price of wheat should be raised to Rs1,400 per 40 kg or to a minimum Rs1,375 per 40 kg. The wheat cultivation season will begin next month.

The cultivation cost of sugarcane had increased to Rs192 per 40 kg so the procurement price should be in line with the cultivation cost, they said.

Published in The Express Tribune, October 31^st, 2019.

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