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The government has been asked to keep the wheat support price at Rs 1000 per 40 kg as the farmers organisations say that high support price would help them grow more wheat in the next season and ensure self-sufficiency in principal food requirement.
This demand was made by farmers who attended the annual meeting of Agriculture Policy Institute (API) standing committee on wheat here on Tuesday. Farmers also demanded that the prices of all agricultural inputs should be capped at the present level, a senior official told Business Recorder.
Flour millers who also attended the meeting opposed the increase proposed by representatives of farmers association saying that the support price should not go beyond Rs 700/40 kg against the last season's price of Rs 625/40 kg. The last season's price was announced very late due to which the government could not persuade farmers to grow more wheat and the last fiscal year's wheat target was also missed mainly because of this factor.
This year the government has started the exercise in advance as the Ministry of Food, Agriculture and Livestock (Minfal) is gearing to give the final wheat support price in August while the wheat sowing starts in October/November, the official said.
Millers, however, opposed the price fixation at Rs 1000 as proposed by farmers organisation saying that the government should fix the price at a reasonable level as the high wheat price would result in increase in price of flour, which is already going high in the market.
However, farmers association was of the view that according to the estimates of the United Nations and international and financial institutions, the international food crisis will continue for another two/three years, therefore, the government is required to give maximum incentives to the farmers so that Pakistan could face the challenge by having its own wheat reserves.
Farmers also observed that if Pakistan achieved more wheat, then it could export it to neighbouring countries especially Afghanistan. "This will earn Pakistan foreign exchange as the wheat prices are expected to remain high in the international market even in next wheat season.

Copyright Business Recorder, 2008

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