ECC raises minimum support price for wheat to Rs1350 per 40kg

ISLAMABAD: Economic Coordination Committee (ECC) of the federal cabinet has increased the minimum support price of wheat from the current Rs1300 to Rs1350 per forty kilograms to safeguard the interests of the growers and ensure food security for the masses.

The decision to raise the wheat price by Rs50 per 40kgs was taken at a meeting of the ECC of the federal cabinet chaired by Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh.

The ECC was told that the minimum support price of Rs 1300 per 40 kg for wheat had not been enhanced for the last five years. However, an appropriate support price for the next wheat crop is necessary to meet the cost of production in view of factors such as the world wheat situation, cost of production, export-import parity prices and domestic producer prices.

The price has risen to Rs 1349.57 per 40 kg in Punjab and Rs 1315.72 per 40 kg in Sindh as per findings of the Agriculture Policy Institute.

The ECC discussed the issue in detail and in view of the world wheat price hovering around Rs 1575 per 40 kg with and Rs 1440 per 40 kg without duties and customs duties, decided to enhance the minimum support price for the next crop of wheat from the current Rs 1300 per 40 kg to Rs 1350 per 40 kg.

The ECC also asked the Ministry of National Food Security and Research to approach the provinces well in time to make adequate wheat procurement in the coming season failing which any request from provinces for releases from Pakistan Agricultural Storage and Services Corporation (PASSCO) would entail 100 per cent payment of incidental charges.

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The ECC also asked for chief secretaries or their representatives from the provinces to be invited to attend the next ECC meeting, and directed the Ministry of Finance to present to the ECC on the rising circular debt on the commodity operation which had already crossed Rs 450 billion.

The ECC also considered a set of proposals by the petroleum division regarding provision of utilities, particularly the installation of gas connections, in the Special Economic Zones (SEZs) and after a detailed discussion on the various proposals presented by the Petroleum Division to provide necessary provisions of gas, electricity and other facilities at the SEZs.

The ECC also took up a proposal by the Ministry of Industries and Production for grant of technical supplementary grant of Rs6 billion to the Utility Stores Corporation for subsidy and provision of essential commodities such as flour, sugar, ghee, rice and pulses at a fair price to the under-privileged sections of the society, in line with the package announced by the prime minister.

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The ECC also considered a proposal by the Ministry of National Food Security & Research for release of 200,000 tonnes of wheat at Rs 1375 per 40 kg from the PASSCO stocks to the Utility Stores Corporation to compensate vulnerable segments of the society and to discourage hoarding and profiteering.

Towards the end, the ECC also took up and approved a detailed proposal based on a comprehensive four-year circular debt Capping Plan presented by the Power Division to address the flow of the circular debt through effective efficiency improvement measures and ensure an effective implementation of the National Electricity Policy 2019.

Under the plan that mainly addresses sector inefficiencies, discrepancies in tariff regime, fiscal allocations and government policy measures, planning and debt servicing of power holding private limited loans, measures would be taken to improve power distribution collection, reduction in line losses, rationalisation of subsidy allocations, reduction of running and permanent defaulters and reducing power sector flows to less than Rs 75 billion per annum from the current level of Rs 465 billion per annum.