PTI govt increases wheat support price to Rs1,400
PM Imran Khan also says benefit of falling oil prices to be passed on to consumers
PHOTO: REUTERS
ISLAMABAD:
The federal government on Thursday approved an increase in the wheat support price to Rs1,400 per 40 kilogram and also reiterated to pass on benefits of fast dipping oil prices to the consumers.
In a meeting of the party’s parliamentary committee, Prime Minister Imran Khan said that the benefits of reduced oil prices will be passed on to the consumers. The global crude oil prices have nosedived due to the impact of coronavirus on world economy and price war between Russia and Saudi Arabia over reduction of crude production.
After dragging feet for three months, the Economic Coordination Committee (ECC) of the cabinet finally came to terms with the Ministry of National Food Security and Research that had recommended Rs1,400 support price in November last year.
The ECC fixed the minimum support price of wheat at Rs1,400 per 40kg to ensure parity in wheat prices throughout the country, according to a statement issued by the Ministry of Finance. The ECC also set up a high-level Wheat Procurement Monitoring Group to ensure smooth procurement of wheat by the public sector departments in the upcoming harvest season, it added.
Earlier, the ECC in November last year had decided to fix the minimum support price of wheat crop 2019-20 at the level of Rs1,365 per 40kg against the food ministry’s recommendation of Rs1,400. The ECC had to revisit its decision after the Sindh government set the procurement price at Rs1,400.
Cumulatively, the wheat support price has been increased by 7.5% as compared to the last harvesting season when the farmers were paid Rs1,300 per 40kg.
The cost of wheat production has risen to Rs1,349.57 per 40kg in Punjab and Rs1,315.72 per 40kg in Sindh, which has made it difficult for the farmers to make both ends meet.
The finance ministry said that a meeting of wheat review committee convened on March 9, 2020 under the chairmanship of National Food Security and Research Minister Makhdoom Khusro Bakhtiar had recommended enhancement of the support price for the wheat crop 2019-20 from Rs1,365 per 40kg to the level of Rs1,400 per 40kg.
The ECC also set up a Wheat Procurement Monitoring Group comprising Bakhtiar, Railways Minister Sheikh Rasheed Ahmad, Economic Affairs Minister Muhammad Hammad Azhar and Special Assistant to Prime Minister on Petroleum Nadeem Babar. The group would coordinate with the provincial governments, involve the public and use technology to ensure the process of wheat procurement by Pakistan Agricultural Storage and Services Corporation (Passco) and provincial governments in the coming harvest season was carried out in an efficient and transparent manner.
The Wheat Procurement Monitoring Group would also ensure that the allied issues related to incidental charges, supply of adequate gunny bags to farmers and procurement of wheat by provinces and the private sector as per plan and targets were properly streamlined and addressed to provide a level-playing field to all stakeholders, including the public in terms of provision of flour at the lowest possible price throughout the year.
The ECC was given a detailed presentation on the arrangements made for the procurement of enhanced target of 1.8 million tonnes by Passco, which also shared with the ECC an enhanced efficiency model in procuring increased target and mechanism to rationalise the incidental charges.
Besides the wheat issue, the ECC also discussed the falling prices of oil in the international market and its impact on the national economy. The ECC “announced the benefit of the reduced oil prices in the global market would be passed on the consumers in Pakistan in due course of time as per the mechanism already being followed by the government,” stated the finance ministry.
However, last month the PTI government passed on only 40% of the benefit of reduction in crude oil prices and retained the remaining share by increasing the petroleum levy rates by up to 106%.
The ECC also approved a technical supplementary grant of Rs12.813 million of Inter Board Committee of Chairmen in favour of Ministry of Federal Education and Professional Training and another technical supplementary grant amounting to Rs13.02 million in favour of Human Rights Division.
The ECC also approved the Annual Report of Competition Commission of Pakistan (CCP) for the financial years ended 2015, 2016 and 2017, and asked the CCP to give a detailed presentation to ECC in the next meeting on the overall scope of its work and what had been achieved by the commission so far with regard to its mandated role to ensure fair competition in different sectors of economy it governed.
PM Imran has been very critical of the performance of the CCP and said last month to get the chairperson removed through legal means. The PM had said that the CCP failed to perform and could not check prices of wheat and sugar.
Published in The Express Tribune, March 13th, 2020.
The federal government on Thursday approved an increase in the wheat support price to Rs1,400 per 40 kilogram and also reiterated to pass on benefits of fast dipping oil prices to the consumers.
In a meeting of the party’s parliamentary committee, Prime Minister Imran Khan said that the benefits of reduced oil prices will be passed on to the consumers. The global crude oil prices have nosedived due to the impact of coronavirus on world economy and price war between Russia and Saudi Arabia over reduction of crude production.
After dragging feet for three months, the Economic Coordination Committee (ECC) of the cabinet finally came to terms with the Ministry of National Food Security and Research that had recommended Rs1,400 support price in November last year.
The ECC fixed the minimum support price of wheat at Rs1,400 per 40kg to ensure parity in wheat prices throughout the country, according to a statement issued by the Ministry of Finance. The ECC also set up a high-level Wheat Procurement Monitoring Group to ensure smooth procurement of wheat by the public sector departments in the upcoming harvest season, it added.
Earlier, the ECC in November last year had decided to fix the minimum support price of wheat crop 2019-20 at the level of Rs1,365 per 40kg against the food ministry’s recommendation of Rs1,400. The ECC had to revisit its decision after the Sindh government set the procurement price at Rs1,400.
Cumulatively, the wheat support price has been increased by 7.5% as compared to the last harvesting season when the farmers were paid Rs1,300 per 40kg.
The cost of wheat production has risen to Rs1,349.57 per 40kg in Punjab and Rs1,315.72 per 40kg in Sindh, which has made it difficult for the farmers to make both ends meet.
The finance ministry said that a meeting of wheat review committee convened on March 9, 2020 under the chairmanship of National Food Security and Research Minister Makhdoom Khusro Bakhtiar had recommended enhancement of the support price for the wheat crop 2019-20 from Rs1,365 per 40kg to the level of Rs1,400 per 40kg.
The ECC also set up a Wheat Procurement Monitoring Group comprising Bakhtiar, Railways Minister Sheikh Rasheed Ahmad, Economic Affairs Minister Muhammad Hammad Azhar and Special Assistant to Prime Minister on Petroleum Nadeem Babar. The group would coordinate with the provincial governments, involve the public and use technology to ensure the process of wheat procurement by Pakistan Agricultural Storage and Services Corporation (Passco) and provincial governments in the coming harvest season was carried out in an efficient and transparent manner.
The Wheat Procurement Monitoring Group would also ensure that the allied issues related to incidental charges, supply of adequate gunny bags to farmers and procurement of wheat by provinces and the private sector as per plan and targets were properly streamlined and addressed to provide a level-playing field to all stakeholders, including the public in terms of provision of flour at the lowest possible price throughout the year.
The ECC was given a detailed presentation on the arrangements made for the procurement of enhanced target of 1.8 million tonnes by Passco, which also shared with the ECC an enhanced efficiency model in procuring increased target and mechanism to rationalise the incidental charges.
Besides the wheat issue, the ECC also discussed the falling prices of oil in the international market and its impact on the national economy. The ECC “announced the benefit of the reduced oil prices in the global market would be passed on the consumers in Pakistan in due course of time as per the mechanism already being followed by the government,” stated the finance ministry.
However, last month the PTI government passed on only 40% of the benefit of reduction in crude oil prices and retained the remaining share by increasing the petroleum levy rates by up to 106%.
The ECC also approved a technical supplementary grant of Rs12.813 million of Inter Board Committee of Chairmen in favour of Ministry of Federal Education and Professional Training and another technical supplementary grant amounting to Rs13.02 million in favour of Human Rights Division.
The ECC also approved the Annual Report of Competition Commission of Pakistan (CCP) for the financial years ended 2015, 2016 and 2017, and asked the CCP to give a detailed presentation to ECC in the next meeting on the overall scope of its work and what had been achieved by the commission so far with regard to its mandated role to ensure fair competition in different sectors of economy it governed.
PM Imran has been very critical of the performance of the CCP and said last month to get the chairperson removed through legal means. The PM had said that the CCP failed to perform and could not check prices of wheat and sugar.
Published in The Express Tribune, March 13th, 2020.