Package for farmers approved: decision on wheat support price proposal deferred by ECC

The Economic Co-ordination Committee (ECC) of the Cabinet on Friday deferred decision on the proposal for increase in wheat support price, and approved one-time incentive package for flood affected areas farmers. The meeting was presided over by Minister for Finance, Dr Abdul Hafeez Sheikh. The ECC constituted a ministerial committee to review the proposal of the Ministry of Agriculture for increase in the support price of wheat.
The meeting approved a grant of Rs 2400 per acre for each farmer in the flood affected areas, with 12.5 acres or less land, in an effort to support them in the Rabi crop sowing. This was stated by Secretary Finance here on Saturday, while briefing the media about the decisions of the ECC meeting.
Holders of more than 12.5 acres land would be allowed a loan facility, and the government would pick up its five percent interest. The cost of the package is estimated at Rs 5 billion to Rs 7 billion, he added. The financial cost of the one-time incentive to the farmers would be equally shared by the federal and provincial governments.
The government will arrange this grant money from its own resources. The review of this year's federal and provincial budgets is underway for re-appropriation, and money would be provided to the farmers urgently as the Rabi sowing season has already started in some areas. The incentive alone will inject more than Rs 80 billion in the rural economy after the Rabi crops are harvested in April-May period next year, he said.
Secretary, Finance, said that a ministerial committee has been constituted to review the support price of wheat for the next crop and to also fix the procurement target. The committee, comprising Agricultural and Petroleum Ministers, Deputy Chairman of Planning Commission and State Bank of Pakistan (SBP) Governor, would also discuss the issue of 'commodity financing' and submit report on all issues within a week.
The meeting also decided to defer the demand of the Ministry of Commerce to ban export of livestock, following opposition by other ministers because this would affect the cattle farmers, and decided, in principle, to abolish inland freight equalisation margin (IFEM), with the condition of formal approval of the Cabinet. The meeting accorded approval for setting up of a coal and clinker cement terminal at Port Qasim. The relevant authority boards could approve in future all projects having no government financing and guarantee.
The meeting directed Ministry of Petroleum and Power to resolve the issue with respect to the gas allocations from the Kunar Pasakhi gas field for power generation. The meeting also approved an incentive package for the development of indigenous coal resources, and proposed 20 percent internal rate of return incentive to companies that would achieve financial close before December 31, 2015.