ISLAMABAD: The government is working on a policy that will not only reduce dependence on imported palm oil but also facilitate and support farmers to grow oilseed crops, Minister for National Food Security and Research, Tariq Bashir Cheema, said on Tuesday.

At a press conference, Mr Cheema said the government has decided to take short- to long-term policy measures for the uplift of the agriculture sector, focusing on encouraging the farming community to bring more area under cultivation with the ultimate objective of achieving self-sufficiency in all the major crops and reducing the country’s import bill for certain agricultural products.

The country is currently spending $4.5 billion annually on the import of palm oil, and it is expected that the import bill for this commodity will increase to $6bn next year.

The minister said spending $1bn on the import of three million tonnes of wheat and $6bn on importing palm oil in a year is a big loss of foreign exchange, which is a matter of grave concern.

“The present government has revised the procurement targets for the procurement of wheat by the Punjab government and Passco, which have been achieved. In the wake of the Russia-Ukraine war and the pressure built on the countries of the Central Asian Republic on their exports, the government has attained sufficient wheat stock to avoid the imposition of any emergency,” he added.

The minister said that the support price for wheat, being the important staple food crop, will be announced well ahead of the rabi season so that farmers will be able to have their own production estimates while keeping in view the market trends.

As far as cotton is concerned, Mr Cheema said that Prime Minister Shahbaz Sharif has already formed a special committee headed by Shahid Khaqan Abbasi, to formulate a recommendation as to how to incentivise cotton growers so that the lost area under cotton cultivation should be revived.

The intervention price for cotton will be set keeping in view of the price in the international market so that cotton growers should not face any loss, he said.

As part of the long-term policy measure, the government has decided to solarise all the 1.2m tube wells that are run on electricity. Once solarised, the agricultural tube wells will be 100 per cent free of electricity.

The special committee has proposed that bank financing on easy instalments be offered to farmers, and in this regard, the government is currently negotiating with commercial banks, he said.

He said that all agricultural inputs have been made tax free, and while referring to the availability of tractors, he was of the view that farmers should get tractors from banks on lease financing, as in the case of leasing of vehicles. This will help eliminate the profit of middlemen.

The minister said that Pakistan and China will shortly sign an agreement on buffalo breed improvement.

Published in Dawn, July 6th, 2022

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Urgent challenge
Updated 02 Mar, 2024

Urgent challenge

The incoming finance team will have to prioritise economic decisions over political considerations and personal whims.
Contempt ruling
02 Mar, 2024

Contempt ruling

AN Islamabad High Court decision penalising the city’s deputy commissioner, a senior superintendent of police and ...
Streets of death
02 Mar, 2024

Streets of death

A LIFE without a sense of permanence is one aspect of a human crisis as complex as homelessness. But the fact that...
Starting over
Updated 01 Mar, 2024

Starting over

Both govt and opposition must resolve that their decisions will prioritise the public good over anything else.
Missing the point
01 Mar, 2024

Missing the point

IN a change of heart, the caretaker prime minister attended the hearing of the Baloch missing persons’ case in the...
Fleecing power consumers
01 Mar, 2024

Fleecing power consumers

THE so-called independent inquiry committee, formed by the power ministry to probe charges of excessive billing by...