LAHORE: Growers have urged the Government to develop Minimum Support Price (MSP) Committees at Tehsil level till end of February, which should work to ensure that farmers receive whatever the support price, is announced by the government.

“If food is a provincial matter then provinces should fix the price according to their circumstances as only Pakistan Agricultural Storage & Services Corporation (PASSCO) is involved in buying the grain representing the federation,” said stakeholders while participating in a discussion arranged by the Agriculture Republic, a platform founded to discuss the issues faced by the agri-sector recently.

Participants were of the opinion that farmers should demand a minimum support price as otherwise traders would slaughter the wheat growers. The support price should have been backed by cost of production and it would have made sense. In the last five years the price has increased from 1350 to 1650, even the price of 1350 was not objectively fixed and by fixing a low support price it starts making sense for commodity buyers to take advantage of the difference, participants observed.

The government should not indulge too much into the pricing. There should be an independent board who should the fix price after evaluating ground realities. The composition of such a board would be important. Attractive support price will gear up the farming communities to invest on crop. The government should ensure that they will implement it at local Mandi level.

If any broker or dealer will purchase below the support price then they will be fined at least Rs 100,000 on every complaint and fine should go to farmer registering the complaint with full evidence, participants observe. Complaint will be resolved by the Tehsil MSP Committee (comprising Assistant Director Agri. Extension and nominated person from revenue department, wheat dealers association and farmers association).

Aamer Hayat Bhandara and Foud Bajwa, founders of the platform, told Business Recorder the wheat and flour prices in the country have been increasing under a presumed future shortage of wheat. Food prices have been rapidly rising overall. This is posing a possible threat to the sustenance of livelihood for poor households. Food inflation has remained a major contributor to inflation over the last decade. To ensure a smooth supply of wheat, farmers have to be incentivized to produce more.

They said that the platform had also discussed the issue of fixing wheat Minimum Support Price (MSP) in June-July to suggest some remedial measures to the government in this regard.

Muzaffar Hotiana, an agriculturist observed that the government should continue practice of fixing minimum support price but it should be done before the start of sowing season. Irfan Hussain observed that the Government should come up with a minimum support price with proper homework. Mohsin Ali said that fixing the rate is not a problem but the issue is implementing the support price.

Hamid Malik said as the cost of input like seed, fertilizer & pesticides, apart from transport & cost of living in rural areas has increased manifold, increase in wheat MSP is imperative.

Copyright Business Recorder, 2020