April 02, 2008	Wednesday	Rabi-ul-Awwal 24, 1429

HYDERABAD, April 1: Congratulating Prime Minister Yusuf Raza Gilani on securing unprecedented mandate from the National Assembly Sindh Abadgar Board President Abdul Majeed Nizamani has reiterated the demand of wheat growers to fix wheat support price at Rs1,000 per 40kg.

In a communication addressed to the prime minister, a copy of which was faxed to Dawn, the SAB president said the measure would discourage smuggling, black economy, hoarding, and save foreign exchange, reduce deficit and heavy losses to growers due to exorbitant increase in agricultural inputs’ prices and late crushing of sugarcane, non-payment of dues by sugar millers, failure of cotton and rice crops and shortfall in wheat production.

Nizamani argued that the international price of wheat presently was $500 per ton and the situation at international level was also not encouraging as major crop failure has been reported in Australia and Ukraine.

He pointed out that the new price fixed by the federal government was equal to 248 dollars per ton. He said that as Pakistan is not living in an isolated world, it is presumed that the wheat will be purchased by middle men who are likely to smuggle wheat to the neighbouring countries where the rates are equal to the international rates.

The SAB president said that growers in this case were likely to suffer losses to the tune of Rs317 billion - the difference in international and local procurement rates. He feared that by July, the Pakistan wheat may end up in neighbouring countries where the rate is higher.

He maintained that this will cause severe shortage of wheat and increase the prices of flour as witnessed last year. He said the government will be compelled to import five million tons of wheat for which it will have to pay Rs158 billion in foreign exchange.

He said if wheat procurement price was fixed at Rs1,000 per 40 kg, the traders will have no incentives to smuggle wheat abroad and the government will save Rs80 billion in foreign exchange which can be given as a subsidy to consumers.

The SAB president was of the opinion that the government has a tremendous opportunity to turn around the agricultural economy and build the economy of Pakistan on strong footings to convert Pakistan into food exporting countries.

He also reminded the Prime Minister that harvesting in Sindh was in full swing and an early decision was needed on this important issue.