ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved supply of re-gasified liquefied natural gas (RLNG) to two fertiliser plants to meet the input requirements of upcoming winter crops, while still being indecisive about increase in wheat support price.
ECC approved the supply of RLNG till the end of November on a summary moved by the ministry of industries and production for ensuring the supply of RLNG to fulfill the requirements of two fertiliser plants namely Agritech and Fatima Fertilizer for the rabi season 2020/21.
ECC ordered the three-member committee, which was constituted earlier, under the chairmanship of minister for industries and production and having members from ministries of finance and food security to prepare a proposal for the further operation of these plants after November and then bring it to the ECC for further decision.
The decision was taken during a meeting presided over by the Adviser to the Prime Minister on Finance Hafeez Shaikh.
ECC approved two technical supplementary grants for the ministry of defence for Rs17 billion during the current financial year.
The ECC in its meeting held on last Monday constituted high-powered ministerial committee for taking decision for minimum support price of wheat for next season. This committee meeting ended just ahead of ECC meeting on Wednesday so the summary could not be prepared.
The government seems in no hurry to fix the support price at a time when the farmers are making arrangements for sowing of next wheat crop. The farmers in Punjab, which is the major hub of food basket of wheat production, used to sow wheat from October 10 to November 10 every year. Now this time they are preparing lands without knowing how much the government is going to fix the minimum support price for next crop. It might result into decreasing sowing area in the country.
There are some startling estimates prepared by ministry official that showed that the last support price of wheat at Rs1,400 per ton was equivalent to input cost of farmers so they did not yield any benefit in last season. If the support price is not increased substantially the farmers would abandon sowing wheat so the self-sufficiency on account of wheat may fall into danger zone in next season as well.
Pakistan’s domestic requirement of wheat stood at 2.25 million tons of wheat on monthly basis and keeping in view the demand of Afghanistan it could go up to 26 million tons wheat on per annum basis. Any wheat crop less than 26 million tons would force the government to import wheat.
The food security ministry proposed wheat support price at Rs1,750 per ton for next season but there is viewpoint of some ministers belonging to urban areas that such increase could build up further inflationary pressures in the domestic market.
“The government is going to fix the support price of wheat less than the proposed level,” one top official said.