Wheat support price fixed at Rs 1050/40 kg

[NiceFarmer]

Federal government will procure the commodity from farmers only if its price falls below the support price

ISLAMABAD: The federal government approved an increase in wheat support price by Rs 100 per 40 kilogrammes, thus increasing it from Rs 950 per 40 kg to Rs 1050 per 40 kg.

This decision was taken during a meeting presided over by Prime Minister Yousaf Raza Gilani at the Prime Minister’s House on Wednesday.

The federal government would intervene in the market and would procure from the farming community 40 kg of wheat at Rs1050, only when the price of wheat would fall below the support price approved by the federal government. The federal government authorised the Pakistan Agriculture Storage and Supply Corporation (PASSCO) to intervene in the wheat market as and when required.

The meeting was informed that the wheat support price duly covered increased cost of production of wheat this season. The wheat production estimates for the ongoing fiscal year 2011-12 are 25 million tonnes and over 19 million tonnes would have to be produced in the province of Punjab alone.

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