Daily Times

The Economic Coordination Committee (ECC) of the federal cabinet has approved the revised minimum support price (MSP) of wheat at Rs2,200 per 40kg, besides approving subsidies for farmers on fertilisers.

Federal Minister for Finance and Revenue Shaukat Tarin presided over the ECC meeting on Thursday.

On a summary presented by the Ministry of National Food Security and Research, subject to approval of cabinet, the ECC approved the revision of minimum support price (MSP) of wheat crop 2021-22 from Rs1,950 per 40kg to Rs2,200 per 40kg, wheat procurement target for Punjab to the tune of 4 MMT with cash credit limit of Rs220 billion.

Khyber Pakhtunkhwa was allowed to procure 0.20 MMT from the Punjab Food Department with their own financial arrangements. Cash Credit Limit (CCL) of PASSCO was also revised from Rs65 billion to the level of Rs72.5 billion at the rate of Rs2,200 per 40kg for procurement of 1.20 MMT of wheat.

The Ministry of National Food Security and Research submitted a summary on extension in date for subsidy disbursement to the farmers on Kharif crop during 2021 on fertiliser (DAP), cotton seed and whitefly related pesticides, under Prime Minister’s package for agriculture in 2020-21. The federal government has already released Rs3.89 billion to Sindh and Rs0.541 billion to Balochistan for the subject scheme. The ECC after discussion approved the proposal of subsidy disbursement till 30-06-2022.

The Ministry of National Food Security and Research submitted another summary on subsidy to the farmers on fertiliser for Kharif crops 2022. The ECC approved subsidy disbursement in Kharif season 2022 amounting to Rs24.26 billion through provinces using their existing mechanism on sharing basis (50:50) for phosphatic fertilisers along with direction to strengthen the tracking system. The federal government’s share will be Rs12.13 billion.

On another summary of the Ministry of National Food Security and Research on fixation of public wheat procurement targets of Sindh and Balochistan along with cash credit limits, the ECC approved wheat procurement target of Sindh to the level of 1.40 million metric tonne (MMT), along with cash credit limit (CCL) of Rs77 billion and target for Balochistan to the level of Rs0.10 MMT along with CCL for the amount Rs6.2 billion.

The ECC also approved a supplementary grant of Rs50 billion to Power Division and Rs4.5 billion in favour of the Ministry of Commerce for Export Development Fund (EDF).

Food Minister Syed Fakhar Imam, Energy Minister Hammad Azhar, Adviser to the PM on Commerce and Investment Abdul Razak Dawood, State Bank of Pakistan Governor Dr Reza Baqir, federal secretaries and other senior officers also attended the meeting.