Govt decides to import 0.3m tonnes of wheat.

Byline: Imran Ali Kundi

ISLAMABAD -- The government on Monday has decided to import 0.3 million tonnes of wheat and also reduced Gas Infrastructure Development Cess (GIDC) on fertilizers to ensure supply of cheap fertilizers to the farmers.

A meeting of the Economic Coordination Committee of the Cabinet (ECC) chaired by Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh has allowed import of 0.3 million tonnes of wheat to decrease the local wheat price and meet the domestic requirement. Under the decision, the wheat would be imported by the private sector by withdrawing regulatory duty to the extent of the approved quantity. The ECC further decided that the wheat to be imported under the ECC decision would be allowed in the country until 31st March 2020 to ensure that the local wheat to be available from the start of April was picked up at the right price from the market. The ECC also issued instruction for the immediate release of stocks held by the PASSCO and the provincial departments.

The government has decided to import wheat in order to maintain the stocks at the minimum level of 0.2 million tonnes. The government could not make the decision of importing wheat earlier despite reduction in its crop. According to the data of the ministry of national food security and research, wheat reserves stood at 7.775 million tonnes as against 11.37 million tonnes at the same time last year, showing a reduction. The country has produced 24.12 million tonnes of wheat against the target of 25.5 million tonnes from an area of 8.833 million hectares during the Rabi season 2018-19. Rains coupled with hailstorms have affected wheat crop in the country and reduced the size of the wheat crop by 1.28 million tonnes. The next two months are quite important as next crop of wheat would start coming in by March end in Sindh and by April end in the Punjab. In order to maintain the strategic reserves at desired levels, the federal government has decided to import wheat.

Besides the import of wheat, the ECC approved a proposal by the Ministry of Industries and Production to reduce the GIDC on gas consumed by the fertilizer manufacturers from Rs 405 to Rs 5 per bag so that this benefit could be passed on to the farmers. The reduction in GIDC will decrease the fertiliser prices. The step will slash the price of urea by twenty percent, which was earlier charged from the farmers in lieu of GIDC.

Prime Minister Imran Khan had issued...