PBF asks Punjab government to revise wheat price

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LAHORE    -   The Pakistan Business Fo­rum (PBF) demanded that Punjab government must re­vise the wheat support price to Rs3,900 per mound from Rs3,000 for the procurement season of 2023.

The PBF Vice President, Chaudhry Ahmad Jawad said that we must bring uniformity to the wheat support price in order to eliminate market dis­tortion. In this regard the pro­vincial cabinet must make the timely decision regarding this.

After the Sindh government raised the price of wheat to Rs4,000 per mound, an up­ward revision of the support price is inevitable for Punjab. Wheat smuggling from Punjab to Sindh has been encouraged by a difference of Rs1,000 be­tween Sindh and Punjab. As the grain market remained stable due to the uniform price of Rs2,200 per mound in Pun­jab and Sindh last year.

It is important to note that the cost of production minus profit for wheat cultivation in Punjab is Rs2,965 per 40 mound. Jawad said that rais­ing the wheat support price from Rs3,000 to Rs4,000 would help local farmers com­pete globally because they would get a good price for their produce. “We have eval­uated import price estimates and determined that a price of Rs4,000 per mound would be competitive globally and re­gionally.” The PBF official even stated that the provincial gov­ernment should manage the situation in a coordinated man­ner to ensure that deserving consumers do not face a price increase for wheat at any time in the interest of consumers.

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A package of targeted sub­sidy programme could be implemented for this purpose to alleviate inflationary pres­sure on vulnerable consumers. However, the PBF believes that a favourable wheat support price would profitably culti­vate this important food staple and encourage wheat growers. “We hope wheat would largely be in safe hands instead of pri­vate buyers who used to sell it in the open market,” he said.

On import of wheat issue, the PBF Vice President, Jah­anara Wattoo said unfortu­nately Pakistan has become an importer of wheat for a number of years. Over six million tonnes of wheat were imported into the country over the past three years for $6 billion, or $2 billion per year on average. 3.162 mil­lion tonnes worth $983 mil­lion were imported in 2021. Pakistan received 2.2 million tonnes worth $795 million the year before. Over a mil­lion tonnes have been import­ed thus far this fiscal year at a cost of $500 million, and the process is continuing.

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The Nation, 20 Feb, 2023
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