Wheat stock: Ministry wants govt to maintain current price
Sends summary recommending Rs1,300 per 40kg, cites sluggish demand as reason
Sends summary recommending Rs1,300 per 40kg, cites sluggish demand as reason. PHOTO: ONLINE
ISLAMABAD:
The Ministry of National Food Security and Research has sent a summary to the Economic Coordination Committee (ECC) of the cabinet to maintain the wheat support price at Rs1,300 per 40kg for next year.
The ministry recently sent the summary to the ECC, suggesting maintaining the price due to the availability of surplus stock in the country and falling demand in the international market.
“We have preferred to maintain the current price instead of increasing it due to a sluggish demand,” said a senior officer in the ministry, adding that the decision was forwarded after consulting other stakeholders. “We believe that any increase would pose further problems in competing in the market.”
Pakistan has had bumper wheat crops in three consecutive seasons, which has resulted in surplus stock. At present, there are almost 8 million tons of wheat stocks in the country, out of which the country’s demand constitutes 6 million and the remaining is surplus.
Despite repeated efforts, the government has failed to export wheat even after giving subsidy. Earlier this year, the ECC had allowed exporting 1.2 million tons of wheat with subsidy of $45 per ton from Sindh and $55 per ton from Punjab, aiming to make the commodity competitive in the international market. So far, however, only 0.3 million tons have been exported.
The subsidy deadline ended on September 30 and the government avoided any further extension despite demand from the Pakistan Flour Mills Association to extend the period.
Published in The Express Tribune, November 13th, 2015.
The Ministry of National Food Security and Research has sent a summary to the Economic Coordination Committee (ECC) of the cabinet to maintain the wheat support price at Rs1,300 per 40kg for next year.
The ministry recently sent the summary to the ECC, suggesting maintaining the price due to the availability of surplus stock in the country and falling demand in the international market.
“We have preferred to maintain the current price instead of increasing it due to a sluggish demand,” said a senior officer in the ministry, adding that the decision was forwarded after consulting other stakeholders. “We believe that any increase would pose further problems in competing in the market.”
Pakistan has had bumper wheat crops in three consecutive seasons, which has resulted in surplus stock. At present, there are almost 8 million tons of wheat stocks in the country, out of which the country’s demand constitutes 6 million and the remaining is surplus.
Despite repeated efforts, the government has failed to export wheat even after giving subsidy. Earlier this year, the ECC had allowed exporting 1.2 million tons of wheat with subsidy of $45 per ton from Sindh and $55 per ton from Punjab, aiming to make the commodity competitive in the international market. So far, however, only 0.3 million tons have been exported.
The subsidy deadline ended on September 30 and the government avoided any further extension despite demand from the Pakistan Flour Mills Association to extend the period.
Published in The Express Tribune, November 13th, 2015.