ISLAMABAD: The government has decided to approach the International Monetary Fund (IMF) for the restoration of the annual announcement of minimum support price (MSP) for wheat, as the abolishment of MSP has negatively affected the production, said Minister for National Food Security and Research Rana Tanveer Hussain on Tuesday.
The minister said this during the meeting of the National Assembly Standing Committee on National Food Security and Research, which met with MNA Syed Hussain Tariq in the chair. “The government is trying to convince the IMF to allow flexibility over food items,” the minister further said, adding that the reduced government control over the market has led to a surge in wheat price.
The minister also said the government is going to announce a new wheat policy in the first week of October to protect farmers and the public. The minister also said that the government is likely to import wheat due to a decline in production. “If wheat output drops by another 6 percent this year, we will have to import $1.5 billion worth of wheat,” the minister warned, stressing that such large-scale imports would place a significant burden on the national exchequer.
The committee also discussed matters related to the import and export of sugar. The minister briefing the committee on the country’s sugar situation said that last year, Pakistan produced 7.6 million tons of sugar against a national demand of 6.3 million tonnes, leaving a surplus of 1.3 million tonnes, he said, adding that the estimated production for this year was 7.2 million tons, but actual output only reached 5.8 million tonnes, significantly below expectations.
He said sugar exports were allowed without any government subsidies, which brought in $450 million in foreign exchange. However, due to the shortfall, Pakistan is now importing sugar worth $150 million. “The real reason behind the price hike is the sugar mafia,” he said.
Rana Tanveer also noted that sugar prices were successfully brought down from Rs. 210 per kg. However, committee member Rana Hayat expressed concern, questioning why sugar prices were not being controlled like wheat. “You managed to stabilize wheat prices. Why can’t the same be done for sugar?” he asked.
He warned that sugar imports at this stage could harm farmers during the upcoming crushing season. He urged the government to ensure protections for farmers moving forward.
In view of the significance of tobacco as a crop, the committee reiterated its earlier recommendation that it should be accorded due importance. It emphasized that both farmers and companies involved in the tobacco sector must be provided adequate protection by the Ministry of National Food Security and Research (MNFS&R).
The committee stressed the need for enhanced research and development, particularly in seed development, utilizing the funds collected by the Pakistan Tobacco Board (PTB) in collaboration with tobacco companies.
Tobacco companies present during the meeting were asked to submit, in writing, their key issues along with proposed solutions. The committee was informed that solar-powered processing technologies, as previously suggested, are not entirely feasible due to the specific requirements of the tobacco curing process. However, there may be potential for combining solar with direct electricity as an alternative. Furthermore, the committee directed the PTB to present an update in the next meeting regarding the price difference between flavored tobacco and fillers in the local and international markets. The committee recommended that MNFSR allocate a specific portion of the PTB’s funds for Corporate Social Responsibility (CSR) initiatives, focusing on the welfare and development of tobacco-growing areas. Additionally, the Federal Board of Revenue (FBR) provided the committee with details of the Federal Excise Duty (FED) and CESS collected from tobacco over the past five years.
The committee asked the ministry to provide a factual update at the next meeting on the damage caused by recent floods to crops.
The Ministry briefed the committee on the National Agriculture Biotechnology Policy (NABP) 2025, emphasizing that its implementation is essential to address the challenges posed by a growing population and the impacts of climate change. The strategic focus areas of NABP-2025 include Conventional Biotechnology, Genetically Modified (GM) Crops, New Plant Breeding Tools, and the export/import of Genetically Modified Commodities.
The committee expressed concern over Pakistan’s decline in crop yields despite continued efforts, especially when compared to regional countries that are consistently increasing their agricultural productivity. The committee recommended that the ministry ensure that all necessary precautions are taken regarding the potential side effects of biotechnology, while also considering the long-term implications for crop sustainability and the risk of export rejections.
The committee asked the Secretary of the Ministry of National Food Security and Research to submit the Phase II feasibility report of NABP 2025 at the next meeting.
MNAs Rana Muhammad Hayat Khan, Nadeem Abbas, Chaudhry Iftikhar Nazir, Abdul Qadir Khan, Zulfiqar Ali Behan, Usman Ali, Nazir Ahmed Bughio, Syed Javed Ali Shah Jillani, and Syed Ayaz Ali Shah Sheerazi, and other senior officials of the MNFS&R, also attended the meeting.
Copyright Business Recorder, 2025