Islamabad withdraws minimum support prices for wheat

Islamabad has decided to withdraw from the domestic wheat market system by eliminating the annual announcement of the minimum support price. As per the National Food Security and Research (NSFR) secretary, the government will not uphold its longstanding policies that offer minimum support prices to farmers for wheat.

This decision to stop meddling in the national wheat market comes after Pakistan’s agreement with the International Monetary Fund (IMF). The NSFR secretary assured the committee that Pakistan has adequate wheat stocks and, thus, does not need to rely on imports for the current period.

He also confirmed that no restrictions exist on intra-national transportation of wheat. As the wheat supply is seemingly exceeding its demand, Islamabad has decided to collaborate with private entities to provide farmers with storage facilities. According to reports, the government is also working closely with commercial banks to facilitate the process of farmers obtaining storage facilities.

Previously, Islamabad intervened in the wheat market to stabilise domestic prices by keeping them below the price of imported wheat. This was especially beneficial for customers with low household incomes, as a large proportion of their income is usually spent on procuring adequate nutrition.

Farmers also greatly benefitted from the policy as the existence of an MSP reduced price fluctuations while guaranteeing a fallback option for producers in the event that their yields did not attract buyers in the market.

MNA Syed Tariq Hussain chaired the meeting of the National Assembly Standing Committee on National Food Security. He outlined the dangers of a potential wheat shortage in the coming year because of suboptimal rainfall levels and extreme heat.

Reports reveal that while addressing the issue of subsidies for Gilgit-Baltistan, the NSFR secretary clarified that the government has not eliminated them and that Islamabad is in the process of digitising the system to enhance transparency.

Considering ongoing challenges, the committee chairman instructed the ministry to draft a 20-year plan to tackle the impact of population growth and climate change on agriculture. The plan, which needs to be submitted to parliament for approval, aims to boost yields by investing in advanced techniques and research.

Rice productivity reportedly remained the topic of discussion, among other things, as the ministry announced an 8-maund-per-acre increase in yields. Officials from the Pakistan Agricultural Research Council (PARC) reported that they have developed eight new rice varieties after their research activities.

The new rice varieties are capable of producing 90 to 100 maunds per acre and are of export quality. If farmers grow rice of the aforementioned varieties, exported yields could bring in much-needed foreign reserves for the cash-strapped country.