ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved Rs1,650 per 40kg as minimum support price (MSP) for next wheat crop 2020-2021 following prime minister directives that all provinces must be taken on board on the matter, and two days after the adviser on finance's virtual meeting with the chief minister Sindh.
On October, 25, the ECC proposed increase in wheat support price from Rs1,400 to Rs1,600 per 40kg for its upcoming crop to the cabinet; however, the cabinet deferred the proposed increase, and directed that all the provinces be taken into confidence before making the final decision.
Sources on condition of anonymity, however, did not rule out further increase in minimum support price, saying that if any increase was inevitable it would be after the arrival of the next crop. The ECC meeting presided over by the Adviser on Finance, Dr Abdul Hafeez Shaikh, on Friday also approved technical supplementary of Rs11.68 billion grant for the settlement of outstanding dues of non-litigant retired employees of the Pakistan Steel Mills (PSM).
On the issue of wheat, the ECC approved minimum wheat support price, and decided to maintain the current release price at Rs1,475 per 40kg till April 2021. However, it remains unclear as to how much subsidy the government would provide to bridge the differential between the release price and the price of import.
The ECC meeting also decided to allow additional import of 0.4 million tons for Punjab that would increase the import to 2.2 million metric tons, said an official on condition of anonymity.
The meeting also discussed five proposals to provide direct subsidy to farmers with a view to supporting them against rise in input cost, which included; (i) transfer direct cash into the account of registered farmers through using the NADRA's database; (ii) cheaper electricity at tube-wells; (iii) subsidy on diesel; (iv) interest-free loans to the small farmers; and (v) provide them some items directly by the government.
The ECC also took decisions with regard to demand and supply of wheat to stabilise the local market and to reduce the wheat flour prices across the country as directed by the prime minister, a Coordination Committee was constituted to deal with import of wheat and its logistics and distribution to the recipient agencies.
The Committee will be chaired by the adviser finance and will include Advisor to the Prime Minister on Institutional Reforms and Austerity Dr Ishrat Hussain, Minister for Industries and Production Hammad Azhar, SAPM on Revenue Dr Waqar Masood, Federal Minister for National Food Security and Research Syed Fakhar Imam, and Governor State Bank of Pakistan Dr Reza Baqir.
The committee will also comprise secretaries Finance, NFS&R, Communications, Commerce, Maritime Affairs, Railways, and the chief secretaries of Balochistan, KP, Punjab, and Sindh for smooth coordination. After thorough consultations, the ECC also approved grinding ratio of wheat at the base level of 70:30.
It was further decided that the ratio for the refined varieties of wheat flour would be decided by the Coordination Committee later. The ECC also approved aggregate release of wheat at 38,000 MTs per day to flour mills. This included 25,000 MTs representatives of all the provincial governments were on board by Punjab, 8,000 MTs by Sindh, 4,000 MTs by KP, and 1,000 MTs by Balochistan.
The ECC also approved the request by the Government of Punjab to provide additional 0.7 MMTs of wheat, out of which 0.4 MMTs of wheat will be imported by the TCP for Punjab. Minister for National Food Security and Research Syed Fakhar Imam, Adviser to PM on Commerce Abdul Razaq Dawood, SAPM on Revenue Dr Waqar Masood, Minister for Industries and Production Hammad Azhar, Federal Minister for Planning, Development, Reforms and Special Initiatives Asad Umar, and Advisor to the PM for Institutional Reforms and Austerity Dr Ishrat Hussain attended the ECC. Governor State Bank of Pakistan Dr Reza Baqir and provincial chief secretaries also participated through video links.
Copyright Business Recorder, 2020
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