ISLAMABAD, Nov 28: The Senate standing committee on food, agriculture and livestock has recommended an increase of Rs100 in the support price of wheat per 40kg and reduction in the price of agricultural inputs in view of current high production costs. A meeting of the committee, held with its chairman, Senator Mohammad Amjad Abbas in the chair, recommended that the support price of wheat be raised from the present Rs425 to Rs525 as cost of production on the basis of estimates made in September has gone up to around Rs468 per 40kg.

The committee called for initiating strict measures to check wheat smuggling and hoarding.

Senator Abbas Komaili, a member of the committee, told Dawn that the meeting expressed concern over lack of proper planning, which often leads to shortage of wheat.

He said abrupt decisions are taken for export of wheat and then the country itself has to import wheat for local consumption.

He said the committee underlined the need for a long-term policy to ensure uninterrupted supply of wheat to the people.

It also urged the government to immediately stop supply of wheat to non-functioning mills, which it alleged were involved in its sale in the open market.

It suggested that electricity bills of the flour mills be also checked in this regard.

The committee attributed large-scale smuggling of wheat and wheat products to Afghanistan, Iran and India, and urged the government to take measures to bridge the gap in prices.

The committee also asked the government to accelerate process of procurement with a view to deal the crisis emerging all over the country.

The committee observed that a perception was gaining ground that industrialists were being given an opportunity to benefit at the cost of poor growers.

The committee emphasised that wheat crop must remain cost beneficial to farmers. Otherwise, the country would face one crisis after the other.

It also termed the existing utility stores network as insufficient and called for improving supply situation, particularly for urban poor and fixed income groups.

The committee recommended that instead of importing wheat, the government should increase support price to benefit farmers and then give it to the people at a subsidised rates.

It said the cost of importing one million tons of wheat comes to around Rs30 billion given the current price-hike in the international market, whereas the same quantity could be grown here by giving Rs9.3 billion subsidy to farmers in the long run. The committee rejected the ministry’s plea that crisis situation emerged on the international scene only after production dwindled in Australia (far below the estimates), saying the Ministry of Food and Agriculture must have been able to make more accurate projections.

Earlier, the additional secretary, Ministry of Food and Agriculture, briefed the Senate committee on wheat situation in the country.

He said that the ECC had allowed import of one million tons of wheat. Similarly, he said a complete ban had been imposed on export of wheat and district governments have been asked to check hoarding and smuggling.

The meeting was attended, among others, by senators Ms Agha Pari Gul, Ms Semeen Siddiqui, Mir Mohabat Khan Marri and Raza Mohammad Raza besides senior officials of the Ministry of Food and Agriculture.