Increase in wheat support price from Rs 625 to Rs 950 per 40-kg will help bring the farmers back to wheat cultivation as in the past they preferred to grow other cash crops for monetary gains, said Dr Murtaza Mughal, President, Pakistan Economy Watch here on Friday.
He lauded the government's decision to raise wheat procurement price and said growers need more encouragement from the government to save them from the exploitation of middleman. Dr Mughal said the prices of all other inputs including diesel and electricity remain the same. Scarcity of water still haunts peasants.
The fertiliser shortages, black marketing, fake pesticides, lack of loans etc still exists, threatening the system, he added. He said the government should provide flour to misfortunate on subsidised prices as the present network of Utility Stores Corp is insufficient to serve the purpose.
Dr Mughal said that government can slash fertiliser subsidy and use this money to provide flour to masses on affordable prices. Some amount can also be earmarked to bailout sinking textile sector, he added. Dr Mughal said that flour millers should not be allowed over Rs 55 profit for grinding.