Wheat support price Rs950

ISLAMABAD " Prime Minister Syed Yousuf Raza Gilani announced increase in support price of wheat from the existing Rs 625 to Rs 950 per 40 kg.


The decision to this effect was taken in the special Federal Cabinet meeting held under his chair at PM Secretariat on Monday. Sharing details of the decisions, which largely contained incentives for small farmers, with media Premier Gilani said that the new procurement price of wheat had been fixed as 'minimum guaranteed price', to be effective for the upcoming wheat crop.


The Prime Minister said the incentive would not only encourage the farmers to grow more wheat, but also help the government to ensure food security in the country.


He said the government had set a target of 25 million tonnes of wheat production, which would help overcome its shortage and also benefit the common man.


With raise in procurement price, the Prime Minister said the government would endure a cost of Rs 10 billion in this regard, however local farmers would greatly benefit from the facility which was earlier being incurred on imports.


Gilani said if in the market, the farmer was paid less than Rs 950 per kg for his wheat, the government would buy his produce at the guaranteed rate.


He said the step would mostly benefit small farmers, whom he defined as those who owned 25 acres or less land.


When asked how it would affect the rate of a flour bag, the Prime Minister said it would be clear in the next six months after the harvest of new crop.


However, he hoped that the step would produce wheat in surplus amount.


He asked the farmers to grow more wheat and directed the Chief Ministers of all the Provinces to take personal interest in encouraging farmers during the sowing seasons and also to facilitate them.


Gilani said increase in wheat price would also help control cross border smuggling by 90 per cent, because of the levelling of rate with other neighbouring countries.


He rejected the impression that the step had been taken in view of the international agencies, and said it was a part of the government's efforts to ensure good governance.


The Prime Minister also announced introducing Benazir Zarai Card for small farmers, which could be used as an agricultural credit or debit card. He said the passbooks of land would be taken as security, as the farmers could be able to get money through these cards for sowing and would later pay at the time their produce comes to market.


He also made a mention about the already existing Crop Insurance Scheme, which could give protection to farmers in case of natural calamities.


Gilani said the current shortage of wheat was due to the wrong estimate of production level by the previous government. He said loads of wheat were exported considering it as surplus, while later it was imported by paying four times more.


He said a committee had been constituted to introduce similar project like Benazir government's Green Tractor Scheme, which provided loans to farmers to buy machinery.


The Prime Minister said for Benazir Income Support Programme, the process of identification was currently in progress, which would later benefit 3.8 million people.


He said the main objective of the government was to strengthen the economy and bring good governance in the country. He mentioned the improvement in fiscal policies and rearrangement of subsidies as important ingredients in this regard.


Gilani said the government was also focusing on the availability of water for irrigation purposes by setting up small dams, adding that the Ministry of Water and Power had already been directed to ensure the availability of water during the sowing season.