October 04, 2008	Saturday	Shawwal 04, 1429

ISLAMABAD, Oct 3: The Pakistan Economy Watch has lauded the government’s decision to raise the wheat procurement price and said that growers need more encouragement.

In a statement issued here on Friday, the president of the Economy Watch, Dr Murtaza Mughal, said that increasing the price from Rs625 to Rs950 per 40kg would encourage farmers to invest more in the crop. It would also help many farmers to avoid switching to other crops. That would save the country from facing a wheat shortage.

But, Dr Mughal said that it was only one side of the picture. The price of all other inputs including that of diesel and electricity remains the same for farmers. Scarcity of water still torments them. The fertiliser shortage, black marketing, fake pesticides, lack of loans etc still exist, threatening the system.He said the government must control hoarders, flour mills and other price-controlling factors before the arrival of new crop in the market.

The government decision would increase prices and, therefore, necessary steps should be taken to help the poor. The government should provide flour to the poor at subsidised prices, he said, adding that the present network of the Utility Stores Corporation was inadequate to serve the purpose.