Govt Increases Minimum Support Price for Wheat

To achieve self-sufficiency in wheat, the government has decided to increase the minimum support price for wheat to Rs 1,950/40 kg compared to Rs. 1,800/40 kg last year. The Food Ministry hopes this will incentivize farmers to grow sufficient wheat to meet the national production target of 28.90 million mt.

Due to much higher international prices of DAP fertilizer and shipping costs, the domestic price (Rs. 7,300/bag) has also increased significantly. But, the price of urea (Rs. 1,850/bag) is stable and significantly lower than the international price (Rs. 5,400/bag) because the government provides Rs. 126 billion annual subsidy for natural gas.

The government is working closely with the fertilizer companies to ensure adequate availability of both key fertilizers during this Rabi season. Moreover, the government has provided over Rs. 16 billion for fertilizer, seed, pesticide, agricultural loan markup subsidies. These timely initiatives have helped generate record production of many commodities.

The ministry lauded the hardworking farmers, saying they have produced record crops this year. Pakistan has achieved the highest ever production of wheat (27.5 million mt), rice (8.4 million mt), maize (8.5 million mt), mung beans (0.275 million mt), onion (2.3 million mt), and potato (5.7 million mt), while sugarcane achieved the second-highest production (81 million mt).

In 2021-22, the sugarcane production is estimated at 87.67 million tons; 8% higher than that of last year. Rice production is estimated at 8.84 million tons which is 5% higher than that of last year. Maize production is estimated at 9.0 million tons which is 8.5% higher than that of last year while the cotton production as of 1 November 2021 is 6.2 million bales compared to 3.4 million bales (82% higher) at the same date last year.