LAHORE, April 20: The Punjab government on Tuesday announced Rs7 per 40kg as transport charges for farmers and restricted the purchase of the commodity only to the licence-holding private parties. It has also decided to again give 35 per cent power rebate on agriculture tubewells from the next financial year.

The announcement was made by Chief Minister Chaudhry Pervaiz Elahi at a news conference after presiding over a meeting on the procurement of wheat. Food Minister Chaudhry Muhammad Iqbal was also present. He said the government would pay Rs700 million as transport charges to farmers if it procured the targeted 3.5 million tons of wheat.

Official sources said the administrative steps had been taken to help the government meet its wheat procurement targets. The provincial government is already giving Rs1.25 per 40kgs to the farmers as handling charges, raising with the transport charges the official support price of 40kg of wheat to a total Rs358.25 per 40kg as against the actual Rs350 announced by the federal government.

He said the farmers previously used to bear the brunt of the transport charges of wheat, but now the government had decided to give them some relief in this connection. "We are expecting bumper crop this season," he said.

He said it had been decided to allow only the licence-holders to buy wheat and they would be bound to convey their daily procurement to the government so that it could keep an eye on the activity by the private sector.

"Those not holding any licence would not be allowed to purchase wheat at any cost," he said, adding this step had been taken to allow uninterrupted purchase of the commodity by the genuine buyers.

Replying to questions, the chief minister said the government expected 1.1 million tons more wheat this season than the last year when the province had grown 15 million tons of it.

The chief minister said there was no shortage of gunny bags and they were being supplied freely to farmers after the withdrawal of the role of tehsildars and patwaris, who used to attest the requirement of the growers.

He said payments to the farmers were being made on the spot under an agreement made with the National Bank of Pakistan. "I have asked the government officials that no complaint in this regard would be tolerated, and they would have to purchase wheat like the private sector does," he said.

The chief minister said around 99 per cent of the sugarcane growers had been given their dues of the last year by the mills. He said the increase in the farm income tax on large land holdings didn't make any difference.

The government had withdrawn the tax on land up to 12.5 acres which was owned by 95 per cent of farmers in the province, he said. The flat water rate was another relief for small farmers.

The chief minister said the government had given 35 per cent rebate on agriculture tubewells last year and he had requested the prime minister to again allow it in the next budget.