ISLAMABAD: Minister for Planning, Development and Special Initiatives, Asad Umar has acknowledged that prices of sugar and wheat have increased by 73 percent and 53 percent respectively since PTI came in power, well informed sources told Business Recorder. Umar, former Finance Minister, who presented statistics of the economy prepared by the Planning Commission, remarked at a recent cabinet meeting that prices of sugar and wheat increased manifold after the PTI's government took over.
The sources said Minister for Planning, Development & Special Initiatives drew attention of the members to the abnormally high SPI inflation, especially of food items. Giving the trend of the two essential food items, namely, sugar and wheat, he stated that price of sugar was Rs 55.84 per kg in August, 2018, when the present government took over. By the end of September, 2020, it had risen to Rs 96.62, which was a tremendous burden on the average citizen. And the price of wheat flour, staple diet of the common man, had witnessed 53 percent increase.
Minister for Food Security & Research Syed Fakhar Iman apprised the Cabinet that against the target of 27 MMT, the wheat production was 25.2 MMT, leaving a shortfall of 1.8 MMT. It was in this backdrop that the government decided to import wheat through private as well as public sector. He said the private sector had imported 430,000 MT whereas another 660,000 MT is in the pipeline.
In the public sector, TCP had so far imported 630,000 MT and import of another 180,000 MT from Russia on G2G basis was in process. Russians are willing to supply an additional quantity of 500,000 through TCP, the cabinet was further informed.
The already imported wheat, along with the prospective imports, would bring the national wheat stock position to a comfortable level, stabilizing the price of Atta in the market. For the coming wheat season, an early announcement of a reasonable support price would incentivise the farmers and help meet the targeted production.
Food Security and Research Division would bring the summary to the ECC on Wednesday (today). While expressing concern over presentation of inaccurate data to the Cabinet on wheat production and expected shortfall, jeopardizing effective decision-making, and the slow execution of Cabinet's directions to import wheat through public sector, the members emphasized the need to timely execute imports. For the approaching Rabi season, it was stressed that, in addition to timely announcement of support price, the availability of DAP fertilizer and quality seed at competitive prices should be ensured. It was also emphasized that the 80:20 ratio of white flour and wheat should be implemented to enhance flour production.
The adverse impact of heavy monsoon rains on the cotton crop was also highlighted. It was noted that in Punjab the production will fall short of the targeted 6 million bales by one million bales, whereas in Sindh 0.5 million had been lost due to inclement weather.
Special Assistant to the Prime Minister on Climate Change noted that in view of changing weather patterns, a pilot project of smart agriculture was being launched in consultation with the Food Security and Research Division. While endorsing the initiative, the Cabinet desired the Minister for National Food Security and Research to prepare a five-year Agriculture Plan and present it to the forum in one month's time.
Copyright Business Recorder, 2020
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