ECC refuses to approve wheat support price: panel for procurement plan formed

The Economic Co-ordination Committee (ECC) of the Cabinet on Friday refused to approve Rs 600 per 40 kg as support price for 2007-08 crop wheat, as recommended by the Ministry of Food, Agriculture and Livestock (Minfal).
Earlier, the government had announced that it would not fix wheat support price for 2007-08 but promised to procure 0.7 million tons wheat, the main purpose of which was just to lure the farmers.
However, Minfal, on pressure from provinces, floated the proposal of Rs 600 per 40 kg, which was blocked by the anti-farmers lobby with the argument that 42 percent increase in wheat price would mean that wheat would be sold at Rs 22 per kg.
The ECC meeting, Presided over by Prime Minister Muhammedmian Soomro, after detailed discussion constituted a committee comprising Finance Minister, Planning Commission Deputy Chairman and concerned Federal Secretaries to analyse various aspects and prepare a wheat procurement plan by the middle of next week.
The ECC approved the controversial proposal of Ministry of Water and Power regarding setting up four rental power plants of 200-300 MW in the private sector, with several ifs and buts.
The approval of this proposal indicated that the lobby which was interested in buying rental power plants for their personal gains succeeded, at last. The ECC, however, turned down a proposal of the Ministry of Water and Power regarding setting up two thermal power plants, of 500-600 MW each, at Dadu and Guddu respectively, and decided to go for public-private partnership. The ECC decided to award the 450-500 MW thermal power project to Dong Fong of China.
It deferred a long-awaited package incentives for Export Processing Zone (EPZ), the top of which would be 20-year tax holiday due to the absence of Minister Industries and Production.
In September last, the ECC did not approve a similar proposal and directed the sponsoring ministry ie Industries Ministry to re-draft special incentives for the investors interested in setting up industrial units at EPZ at Gwadar.
Soomro, expressing satisfaction over sufficient availability of wheat and other commodities at reasonable prices, lauded the efforts of all organisations including the provincial governments in resolving the challenges with commitment.
The Prime minister said that prices of most of consumable commodities were lowest in the region. This trend no doubt indicated that the poverty level in Pakistan was lower. "Yet we require concerted approach to further facilitate our common man." The concerned departments and organisations should continue to monitor the prices and keep a check over price hike, he added.
The Prime Minister said that since international prices of edible oil were "beyond our control, we need to devise a package" of incentives for local producers of edible oil which would also help save the foreign exchange as well.
He emphasised that all concerned Ministries must have very close co-ordination within and also with the provincial governments in assessing the local requirements of food items and also the need for exports so that neither there is shortage nor price hike inside the country.
While commenting on the assessment of future wheat crop, he asked all concerned Ministries, provincial governments and the law enforcement agencies (LEAs) to keep strict vigilance on the location of stocks and possibilities of smuggling. The local requirements of the country must be given preference and the system of releases, milling, distribution and marketing be streamlined, he said.
The ECC also approved Rs 1.2 billion extra-contractual financial compensation to the contractors of Mangla Dam raising project, which they got with the intervention of President Musharraf. The Prime Minister said that although the Mangla raising project would greatly benefit in terms of water storage, irrigation and power generation, "we still need to build additional reservoirs to be able to meet our future needs".