The federal government increased the minimum wheat procurement price by 14.3% to Rs1,600 per 40 Kg. To give subsidy on fertilisers aimed at increasing farmers’ income.
The decision taken during a subcommittee meeting of the Economic Coordination Committee (ECC). The subcommittee comprised 10 members.
Decided to increase the minimum wheat support price from Rs1,400 to Rs1,600 per kg. An increase of Rs200 or 14.3%. The rates are for next wheat crop but it will set the trend in the market.
Decided in the meeting that Rs1,000 subsidy would be given on a di-ammonium phosphate (DAP) fertiliser bag. Asad Umar moved the subsidy proposal to reduce the input cost of the farmers.
The government decided to increase the support prices to give incentive to farmers to produce more crop. Currently, country is facing shortage of wheat, first time in past 12 years.
The food ministry estimated current wheat consumption, at nearly 28 million tons. Wheat Needs of population of 240 million by 2025 would be over 30 million tons. An increase of 8% in five years.