More increase in wheat support price imperative

ISLAMABAD: The government should revise upward the wheat support price, otherwise, the country may lose 2-3 million tons of wheat output in 2011-12, following rise in the cost of production that would adversely affect sowing.

Well-placed sources told Business Recorder here on Wednesday that the government has fixed wheat support price at Rs 1,050 per 40-kg for the next harvest that is Rs 100 more than the last fiscal year, ie (Rs 950/40-kg). "The overall cost of production of wheat growers is Rs 1013/40-kg that is just Rs 37/40-kg less than the support price of wheat fixed by the government," sources added.

They said, "imagine! Who will go for wheat sowing, while keeping on mind he would get just Rs 37/40-kg profit?"

In 2008 when the present government came into power, the prices of inputs used for wheat production were not as high as they are today. The price of 50-kg urea bag was Rs 740 that has now risen to Rs 1900-2100. DAP was sold at Rs 1900 per 50-kg bag, while now it has surged to Rs 4200/50-kg bag. The price of diesel stood at Rs 70-75/litre, which now stands over Rs 90/litre. A seed bag per acre was sold at Rs 850, while presently it is selling at Rs 1950/acre. The cost of electricity was Rs 2.83/unit, which is now about Rs 6.64/unit.

The support price of wheat should be around Rs 1150/40-kg to encourage the farmers for wheat sowing. "Till the end of November, the growers should have had sown wheat at about 22.7 million acres, while just 9 million acres is sown so far. Most of the farmers in Punjab have decided not to sow wheat due to a meagre amount of profit with the existing support price," sources added.