Govt increases wheat support price to Rs1,300 per 40kg

The last increase was announced months before 2013 general elections when PPP govt raised the support priceby 14.3%

Finance Minister Ishaq Dar, in his capacity as Chairman Economic Chairman Committee, on Saturday approved an Rs100 increase in the support price of wheat to Rs1,300 per 40kg for the 2014-15 crop.

The decision was taken in view of rising cost of inputs.

“As inflation and input cost have increased manifolds, it would be hard for farmers to look for reasonable savings from upcoming wheat crop if the support price is less than Rs1,500 per 40kg”, said Haji Ramzan of Kissan Board Pakistan.

The national target set for the staple crop for year 2014-15 is 25 million tonnes with a total area of 21.4 million hectares to be cultivated.

Agri experts believe the targets being set by the government for wheat may not meet the growing population demand, which is increasing at 2.5% per annum.

Previously, the government had decided in March to keep wheat support prices unchanged at Rs1,200 per 40 kilogrammes, while approving a procurement target of 8 million tonnes for the new crop.

The last increase was announced just months before the 2013 general elections when the Pakistan Peoples Party government raised the support price for wheat by Rs150 per 40kg to Rs1,200, up by 14.3%.