The government has decided to reconsider wheat procurement price, as the new rates, approved by the Economic Coordination Committee on February 25, were outrightly rejected by the agriculture community, informed sources told Business Recorder.
"We are reconsidering wheat procurement price as it has not only been rejected by farmers but also by provincial governments," the sources said, adding that the issue would be tabled in the next ECC meeting by the Minfal, likely this week.
The ECC had approved Rs 510 per 40-kg as wheat procurement price for the current season but revised procurement target from 7 million tons to 5 million tons which was 20 percent or Rs 85 per 40 kg more than the existing support price but less than the actual production cost.
The sources said the Finance Ministry had agreed with the Minfal over Rs 600 per 40-kg procurement price but when the committee headed by Planning Commission Deputy Chairman Dr Akram Sheikh met in the Finance Ministry before the ECC meeting, the decision was changed.
The sources said caretaker Finance Minister, Dr Salman Shah who is considered to be one of the top government officials favouring anti-farmers lobby, was expected to oppose the move of the Agriculture Ministry but this would not happen this time.
There was an impression in the Finance Ministry that the benefit of increase in support price would only be passed on to the big land lords and peasants would remain deprived of this facility.
"This is what the Finance Ministry was opposing with the backing of Deputy Chairman Planning Commission," the sources maintained. Dr Ashfaque Hasan Khan, was of the view that wheat price for the flour mills would, however remain at the existing rate of 465 rupee per forty kilograms, adding that the issue price for the next year would be determined in October/November this year.
It is unclear if the ECC would revise wheat procurement target of 5 million tons. The ECC in its last meeting had asked the Interior Ministry to continue with anti-smuggling and anti-hoarding measures to stabilise the price of wheat in the market.
He further said that next year support price would be calculated on the basis of 30 maund per acre production as compared to current year per acre average yield of 29 maund per acre which means the support price would be less than Rs 500 per 40 kg.