LAHORE: The federal government has decided to give relief to wheat farmers by increasing the support price of wheat. The authorities have increased the price from initial Rs1,300 to Rs,1365 per 40 kilograms. This will finally enable the farmers to have profit on wheat sales.
Prime Minister Imran Khan has decided to increase the support price in a recent meeting. Moreover, the government also increases the support price of sugarcane in Punjab from Rs180 to Rs190 per 40kg. the government has increased the wheat and sugarcane price after 5years and 4 years, respectively.
The government raised the support price of wheat to Rs1,300 from Rs1,250 per 40kg in 2014-15. The price has not been increased since then.
Previously, last month the support price was set to Rs1,350 from 1,300 but even that increase could not provide any relief to the farmers. In Punjab, the production of wheat cost is Rs1,349.57 per 40 kg so the previous increase was not efficient enough.
The federal government had decided the previous set support price to avoid burden on the consumers. This new alteration in price may be a new burden to consumers but will prove as a relief for wheat producers.
20 kilograms of flour will have an additional charge of Rs5 from April next year for the consumers. The current price of a 20 kilograms flour sack is Rs35
Furthermore, unlike the past, the Punjab government will have a limited carry forward stock of wheat. The government will have to seek immunity from the conditions of the Smart Programme of World Bank (WB) once again. The government is to set the purchase target to at least four million tonnes of wheat.