Fixing minimum support price of wheat: NA body suggests to govt to review decision

ISLAMABAD: A parliamentary body on Monday recommended to the government to review its decision with respect to fixing minimum support price (MSP) of wheat crop 2020-2021 at Rs 1,650 per 40kg and raise it up to Rs 1,800 per 40kg to compensate the growers for increase in the cost of production.

The Economic Coordination Committee (ECC) in its meeting on November 6, 2020 had approved Rs 1,650 per 40kg for wheat crop 2021, which was approved by the federal cabinet on November 7.

The National Assembly Standing Committee on National Food Security and Research, which met with MNA Rao Muhammad Ajmal Khan in the chair, recommended to the government to increase the MSP of wheat up to Rs 1,800 per 40kg to compensate the growers for the increase in the cost of production and provide a minimum margin for the producers to stay in the activity.

He said that the committee had earlier proposed to fix the MSP at Rs 1,800 and also stressed its timely announcement.

But despite assurance of the Federal Minister for National Food Security and Research, Syed Fakhar Imam, the MSP recommended by the committee was not approved by the ECC as well as the cabinet due to opposition of some kitchen cabinet members who had nothing to do with agriculture.

He said that the government of Sindh had fixed the MSP of wheat at Rs 2,000 per 40kg and voices had been raised from the Punjab province against the federal government's decision of fixing the MSP at Rs 1,650; therefore, the government needed to review its decision.

Muhammad Ibrahim Khan, PTI's MNA said that the MSP of wheat announced by the government should be increased up to Rs 1,800.

The federal government announced Rs 1,650, while the Sindh government fixed it at Rs 2,000, he said, adding that there should be a consolidated policy.

He further said that the MSP of wheat should be the same across the country.

Ghufran Memon, Secretary for the MNF&R said that his ministry was also expecting that the cabinet would fix the MSP at Rs 1,800 but the ECC and the cabinet after detailed discussion fixed it at Rs 1650 as some of the members were of the view that raising the MSP up to Rs 1,800 would result in increase in flour prices in the market.

A farmer representative told the meeting that farmers had informed the Agriculture Policy Institute (API), the organisation which calculates the MSP that the cost of production per 40kg wheat was Rs 1,575; therefore, the MSP should be fixed at Rs 2,000 per 40kg.

The parliamentary body expressed concern over decline in cotton production in the country, and directed relevant authorities to take immediate steps for increasing the production of cotton in the country.

A senior official of the Federal Seed Certification told the court that the main reason of decline in cotton production in the country in the previous years was climate change.

Due to climate change some areas have been selected for cotton production in Balochistan, he said.

The secretary MNF&R informed the meeting as per available estimates cotton production in the country will be ranging between six million bales to seven million bales in 2020-2021.

The committee also recommended to the government to fix power tariff of agriculture tube well at Rs5.35 per unit and the government should announce 50 percent subsidy on installation cost of solar tube wells.

The committee chairman said that the previous government had lowered electricity charges for agriculture tube wells from Rs 8.85 per unit to Rs 5.35 per unit but unfortunately, the present government increased it up to 12.87 per unit, he said.

The committee also asked the MNFS&R to make serious effort to streamline the export citrus and potato.

MNA Mohsin Nawaz Ranjha briefed the committee about reduction in the price of citrus by Rs 250 per mound by the Citrus Exporters Association as compared to the last year price from Rs 850 to Rs 600.

The committee has directed the secretary MNSF&R to immediately take up the matter with the relevant authorities and resolve the matter.

However, the committee was also informed that fixing the price of any fruit and vegetable did not come under the federal government.

The prices are dependent on demand and supply mechanism by the private sector, and the district government monitors prices at their own level.

The meeting was also attended by MNA Ahmed Raza Maneka, Chaudhry Muhammad Ashraf, Rai Muhammad Murtaza Iqbal,Zahoor Hussain Qureshi, Kamal Uddin, and MNA Shahnaz Saleem Malik.

Copyright Business Recorder, 2020