Regulatory Duty on Wheat Import by Pakistan gives Better Returns
Pakistan Times National News Desk

ISLAMABAD: The government's decision to impose 10 per cent regulatory duty on the import of wheat has been ensuring better returns to the growers.

The decision was taken in the larger interests of the growers to encourage them to increase their crops yield, said an official source here Wednesday.

Giving details, he said, the wheat crop area during 2006-07 is over 8,420 thousand hectares which indicates almost 100 per cent achievement of the targeted area.

He said the target area for 2006-07 was set by the Federal Committee on Agriculture which stood at 8,495 thousand hectares and production at 22.5 million tonnes respectively.

It shows an increase of one percent against the area achievement of the same period during last year, he added.

About the overall wheat stock position he said during last year it witnessed an increase of 3.209 million tonnes.

The Economic Coordination Council (ECC) of the cabinet increased the support price of wheat from Rs.415 per 40 kg to Rs.425 40 kg for the year 2006-07, he added.

He said the overall wheat stock in the country is 3.209 million tonnes with Punjab share at 1.745 million tonnes, Sindh 0.345 million tonnes and NWFP having a share of 0.170 million tonnes while Balochistan's share stood at 0.060 million tonnes.

The surplus wheat stock is about 0.5 million tonnes which was allowed by the ECC to be exported by the private sector, he added.

The public sector has produced 4.515 million tonnes wheat against the target of 5 million tonnes, he added.

He said the private sector was encouraged to participate in the wheat procurement and the State Bank of Pakistan issued instructions to various banks to extend a cash margin facilities.●