The Economic Coordination Committee (ECC) of the federal cabinet Thursday approved the revision of Minimum Support Price (MSP) of wheat crop 2021-22 from Rs. 1,950/40-kg to Rs. 2,200/kg, subject to the approval of the cabinet.
The ECC meeting, held with Federal Minister for Finance and Revenue Shaukat Tarin in the chair, deliberated and approved subsidies to farmers on fertilizers for Kharif crops in 2022, besides fixing public wheat procurement targets of Sindh and Balochistan along with cash credit limits.
The Ministry of National Food Security and Research submitted a summary on the extension in date for subsidy disbursement to the farmers on Kharif crop during 2021 on fertilizer (DAP), cottonseed, and whitefly related pesticides under Prime Minister’s package for agriculture in 2020-21. The federal government has already released Rs. 3.890 billion to Sindh and Rs. 0.541 billion to Balochistan for the subject scheme. After discussion, the ECC approved the proposal of subsidy disbursement till June 30, 2022.
The ministry submitted another summary seeking a subsidy to the farmers on fertilizer for Kharif crops 2022. The ECC approved subsidy disbursement in Kharif season amounting to Rs. 24.26 billion through provinces using their existing mechanism on sharing basis (50:50) for phosphatic fertilizers along with direction to strengthen the tracking system. The meeting was informed that the federal government’s share will be Rs. 12.13 billion.
On another summary of the ministry on fixation of public wheat procurement targets of Sindh and Balochistan, along with cash credit limits, the ECC approved the wheat procurement target of Sindh to the level of 1.40 MMT with the cash credit limit of Rs. 77.00 billion, and target of Balochistan to the level of Rs. 0.10 MMT with a cash credit limit of Rs. 6.20 billion.
The ECC approved the revision of MSP of wheat crop 2021-22 and also set the wheat procurement target for Punjab to the tune of 4.00 MMT with the cash credit limit of Rs. 220.00 billion. Khyber Pakhtunkhwa was allowed to procure 0.20 MMT from Punjab Food Department with their own financial arrangements. Moreover, the cash credit limit of Pakistan Agricultural Storage & Services Corporation (PASSCO) was revised from Rs. 65 billion to the level of Rs. 72.50 billion at Rs. 2,200/40-kg for procurement of 1.20 MMT of wheat.
In addition, the ECC approved a supplementary grant to the tune of Rs. 50 billion for the Power Division and Rs. 4.5 billion in favor of the Ministry of Commerce for Export Development Fund (EDF).
Federal Minister for National Food Security & Research Syed Fakhar Imam, Minister of Energy Hammad Azhar, Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood, State Bank of Pakistan Governor, federal secretaries and other senior officers attended the meeting.
