ECC raises wheat support price after 5 years

ISLAMABAD: The minimum support price of wheat has been increased by the Economic Coordination Committee (ECC) to help safeguard the interest of growers and ensure food security for the consumers, raising the rate from Rs1,300 to Rs1,350 per 40 kg.

The revision took place after participants of the ECC meeting, chaired by Adviser to Prime Minister on Finance Dr Abdul Hafeez Shaikh, learned that the minimum support price had not been enhanced for the past five years.

It was decided that taking factors such as world wheat supply situation, cost of production, export-import parity prices and domestic producer prices into account, a reasonable increase in support price for the next wheat crop was necessary.

As per the figures shared by the Agriculture Policy institute, the cost of production in the fiscal year 2019-20 has increased to Rs1,349.57 per 40 kg in Punjab and Rs1,315.72 per 40 kg in Sindh. Additionally, wheat prices worldwide were perched around Rs1,575 per 40 kg including duties and Rs1,440 without duties.

The ECC has thus decided to enhance the minimum support price for the next wheat crop to Rs1,350 per 40 kg.

For more news and blogs, visit Graana.com.