Wheat support price: Minister terms Sindh government's decision unwise

LAHORE: Senior Food Minister Punjab Abdul Aleem Khan has said that the decision of Sindh government to fix wheat support price at Rs 2,000 per maund is unwise which will not only create an imbalance in the market but also raise flour prices sharply.

In his reaction, Abdul Aleem Khan said that this move of the Sindh government would increase the role of the middleman and besides inflation. He said that it was important to keep the prices of wheat in line with the global market and if the prices were higher, then wheat could not be exported and would remain surplus in the country.

Aleem Khan said that the Punjab government has recommended a price of Rs 1,600 to 1,700 per maund of wheat which is realistic. He said that Punjab government is providing wheat to flour mills at Rs 1,475 per maund after which a 20kg bag of flour is being sold at Rs 860.

He questioned that if wheat is purchased at Rs 2,000 per maund then the flour will not be in the access of common man. He pointed out that the Punjab government was indebted to the tune of Rs 450 billion for subsidy on wheat and monthly a heavy amount is being spent in this regard.

He alleged that the Sindh government had also shown negligence and incompetence earlier in releasing wheat to the flour mills on time and now another inappropriate step has been taken by fixing the price of wheat at Rs 2,000 per maund. This decision should be reconsidered as no government can afford such expensive wheat, Abdul Aleem Khan concluded.

Copyright Business Recorder, 2020