Pakistan raises minimum support prices for wheat


On 26 October 2020, the Economic Coordination Committee (ECC) fixed the minimum support price (MSP) for the 2020/21 wheat crop at PKR 1 600 (USD 10) per 40 kg, 15 percent above the corresponding MSP announced in March 2020 for the 2019/20 crop (FPMA Food Policies). Furthermore, the current subsidy support of PKR 1 000 USD 6.3) per 50 kg of Diammonium phosphate (DAP) fertilizer was extended for the current cropping season. These measures, which come during the planting period of the wheat crops, aim to increase production of wheat in 2021 by incentivizing farmers to expand the planted area, while supporting them to meet the costs of production. The country is seeking to boost national availabilities of wheat to contain prices, which, as of October, reached record and near-record levels and were well above their year-earlier levels in most markets. The high market values have been driven by increased transportation costs and a lingering tight domestic supply situation following reduced harvests in 2018 and 2019, as well as strong exports and low procurement in 2019. These measures follow the release of 900 000 tonnes of wheat from the national stocks together with the establishment of a fixed retail price of wheat flour in July 2020 (FPMA Food Policies) and the lifting of import duties in June 2020 (FPMA Food Policies).

Country: Pakistan