Rise in wheat support price likely

Federal Minister for Food and Agriculture Nazar Muhammad Gondal proposes an increase in the support price of wheat.

ISLAMABAD: Federal Minister for Food and Agriculture Nazar Muhammad Gondal has proposed that the support price of wheat should be increased from Rs950 to Rs1,000 per 40 kg as prices of inputs like fertiliser have increased compared to last year.

The minister was chairing a meeting of the task force on agriculture at the ministry here on Tuesday.

“Per acre cost of production has increased and there will be no attraction for the farmers in sowing wheat if we continue with last year’s support price,” he said.

“The calculation done by the Agriculture Policy Institute suggests that we must increase the support price to offer some incentives in the form of guaranteed procurement prices to encourage farmers to grow wheat,” he added.

“Maintaining food security is the prime responsibility of the government and it has become a challenge after the recent floods,” the minister said.

Gondal said that it is the considered opinion of the task force that the support price of wheat must be increased.

He said that poor farmers need to be supported in the aftermath of the floods to ensure food security in coming years. Gondal said the total amount for the package could amount to Rs15 billion and the federal government would chip in 50 per cent while the remaining 50 per cent will be contributed by the provinces.

Published in The Express Tribune, October 6^th, 2010.