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ECC lays down wheat support price decision due to the threat of food inflation

ISLAMABAD: Economic Coordinating Committee (ECC) of Cabinet postponed decision on in support price of wheat harvest for fiscal year 2022-23 on possible increase in food inflation.

Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided. over meeting of Economic Coordinating Committee (ECC) of cabinet.

Ministry of The National Food Safety and Research Service told the ECC that wheat is a major and strategic crop. of country and in order ensure this is maximum growing and achieving self-sufficiency, government fixes its minimum support price (MSP) to ensure a fair return for agriculture community.

SME for in current year was fixed for 2200 rupees / 40 kg and on on the other hand, the Agricultural Policy Institute (API) worked out 2495 rupees / 40 kg cost of production of Rabi wheat harvest 2022-23 for average farmer and 2427 rupees / 40 kg for progressive gardener.

It is pertinent to note that the Permanent National Assembly on NFSIR also recommended to the federal government may declare MSP of wheat not less than 3000 rupees / 40 kg.

Sources said the ministry of Food shared estimated costs with provincial governments in meeting chaired by the minister for NFS&R and their offerings range Rs 2600/40kg to Rs. 3000/40 kg.

Sources said the provincial offices of Punjab and Khyber Pakhtunkhwa supported price of wheat at the price of 3000 rupees / 40 kg, while government of Balochistan does not have announced in price for now. On the other hand, the provincial cabinet of Sindh has announced in support price of wheat at the price of 4000 rupees / 40 kg.

The meeting was also reported that the Cabinet Committee met with CM Sindh with request review SMP, however, no feedback was received, sources added. The CIS meeting was informed that the recommendation of Sindh government is expected to have multidimensional impacts and is likely to lead to higher food prices.

In addition, PASSCO may not be able to purchase wheat from Sindh while a ban may be imposed in other provinces. on Traffic of wheat across borders. Manufacturers and resellers will use in price inequality between provinces to distort market and hoarding and smuggling are likely to occur added.

In addition, maintaining an abnormally high MSP also have an adverse effect on finance and subsidies of federal and provincial governments. Therefore, a sufficiently high rate of profit, while maintaining in view in flood the situation would be the most prudent course of promotional actions next wheat harvest.

Meanwhile, the Pakistani bureau of Statistics (PBS) in his reports for for the period from April 2022 to September 2022, average local wheat was reported price in rupees 2776.66/40. Inflation for month of August was 26.23% with support price of wheat at Rs. 2200/40 kg. When of increase of each rupee 100/40 kg in NSR, estimated rate of increase of inflation will be 0.16%.

Consequently, in happening of proposed SMP of Rs 3,000, Rs 3,200 and Rs 4,000/40kg Estimated Increase in The preliminary CPI will be 1.27%, 1.60% and 2.86% respectively.

The ECC has requested that the 2022-2023 MSP wheat crop fixed Rs 3,000/40 kg as this will provide a profit margin of 20% for producers or 3200 rupees/40 kg, this will provide a profit margin of 28% to manufacturers.

Ministry of Food has also asked the ECC to direct provincial governments to enact the Hoarding and Speculation Act 1977. in letter and spirit to keep a check on inflation.

import of Wheat through the port of Gwadar

In another summary, the Ministry of National food security and research submitted a summary for consideration of proposals for use Port of Gwadar and revision of procedure for before-shipment inspection agency for import of Wheat. The EX reported that the reasons for higher price in limited applications received, in tender dated 09/26/2022, was increased by risks due to a change in inspection mode and port.

AT view of in higher cost on import of wheat-related with two proposals, the ECC approved the proposal that both amendments to the TCP tender inspection could be deleted for currently. However, pre-shipment inspection should be secured at the port of loading by four leading TCP/Ministry inspection firms of Trade. TCP was also aimed at issue latest tenders for ensure import of allotted amount of Wheat.

About another resume from the Ministry of commerce, in to keep export-oriented industries internationally competitive and support exports in background of economic downturn, ECJ approves continuation of Regionally competitive electricity tariff for Export-oriented sectors during the 2022-23 financial year and decided that electricity can be supplied at a price of Rs. 19.99 per kWh including five export-oriented sectors namely textiles including jute, leather, surgery and sports goods in Pakistan from October 1, 2022 to June 30, 2023.

In addition, ESC also approved additional grant of Rs 410.181 million in service of ministry of Interior for law enforcement expenses

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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