ISLAMABAD: Prime Minister Imran Khan is said to have ordered a probe into the reasons behind the inordinate delay in the announcement of Prime Minister's package for Rabi crops, well-informed sources told Business Recorder.

On November 24, 2020, during the Federal Cabinet's meeting, alluding to the Prime Minister's Package for Rabi crops, especially wheat, some of the members expressed concern over the inordinate delay in implementation of the package.

It was highlighted that farmers would be unable to benefit from this package at this late stage as almost 70-80 percent wheat sowing had already taken place in Punjab.

Ministry of National Food Security & Research stated that the Cabinet while deferring the ratification of the decision of ECC regarding the Minimum Support Price (MSP) of wheat, directed the Minister for NFS&R and the Advisor to PM on Finance and Revenue to finalize matter of fixation of MSP and Prime Minister's Package for Rabi crops, after consulting Government of Sindh, within 48 hours.

Subsequently, the MSP was decided by ECC and ratified by the Cabinet but since the package was not part of the ECC decision so remained un-ratified. It was only in the last Cabinet meeting that the approval of Cabinet for the Prime Minister's Package for Rabi crops, especially wheat, was obtained.

The Cabinet members while conveying their dismay demanded that such lapse should not go un-noticed.

The Prime Minister directed Secretary to the Prime Minister to look into the reasons for delay and inform him of the findings.

The Cabinet directed that reasons for delay in announcement/implementation of Prime Minister's Package for Rabi Crops, especially concerning Wheat, should be explored and the Prime Minister be informed.

On October 29, 2020, the ECC had accorded approval to the PM package, according to which Rs.1000/per 50 kg bag will be given as subsidy on fertilizers; DAP, P and K fertilizers. The Federal and Provincial government will share the subsidy in 70% and 30% ratio. On weedicides @ Rs. 250 per acre and fungicides @ Rs.150 will be given by the Federal Government as subsidy. The provinces will distribute the subsidy in their already prevalent manner but will be responsible for ensuring transparency. The Federal funds for the subsidy will be directly disbursed to the provinces by the Finance Division on the basis of their share, keeping in view their system strength and overall outreach. The Ministry of National Food Security would examine the provinces' demand for funds and after its recommendation Finance Division shall transfer the funds to the provinces. It was also decided that the provinces will expand, improve and up-grade their subsidy disbursement systems.

On November 3, 2020, during discussion, it was pointed out that Government of Sindh had announced Rs, 2000/- per 40 kg as Minimum support Price (CISP), which was on the higher side.

A view was expressed that the subsidy on fertilizer and other weedicide/fungicide should be built in the MSP to be announced by the federal government. Members were of the view that MSP should be based on cost of production and should strike a balance between fair compensation to the farmers' vis-à-vis keeping the wheat/Atta prices at an affordable level for the poor. A view was expressed that impact of other measures related to subsidy on weedicides, pesticides and fertilizers etc will not be as strong as a rational MSP. The Adviser to PM on Finance and Revenue opined that legally the fixation of MSP is in the federal domain and Sindh Government MSP fixation in this regard can be taken as a suggestive figure only. He also highlighted that MSP needs to be fixed carefully because it can impact on the Atta prices instantly.

Copyright Business Recorder, 2020