ECC sharpens its focus on big winter wheat crop

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ECC sharpens its focus on big winter wheat crop

ISLAMABAD: According to information provided to the Economic Coordination Committee (ECC) of the Cabinet, the cost of producing 40 kg of wheat for the Rabi harvest in the market came to Rs2,495 for normal farmers and Rs2,427 for creative ones.

According to sources, the ECC addressed in detail at its most recent meeting the expected cost of the wheat production for the years 2022–2023, including the breakdown of each activity for setting the wheat support price.

The Ministry of National Food Security and Research informed the ECC meeting that the cost of preparing an acre of land for farming was projected to be Rs6,900 for ordinary farmers and Rs9,400 for resourceful farmers. For average farmers and resourceful farmers, the cost of seeds and planting procedures was calculated at Rs5,475 and Rs7,000, respectively.

Fertilizer costs per acre were assessed to be Rs9,450 for resourceful farmers and Rs2,700 for normal farmers. The cost of irrigation and labour per acre was predicted to be Rs8,700 for average farmers and Rs9,450 for resourceful farmers. FYM and applications cost ordinary farmers Rs21,502 and resourceful farmers Rs32,535; harvesting and threshing cost average farmers Rs10,450 and resourceful farmers Rs5,000.

On Monday, the ECC is likely to adopt the wheat minimum support price.

The ECC was informed that the expected land rent for typical farmers was Rs 22,500 per acre and Rs 25,000 for resourceful farmers, while other expenditures (mark-up, Land Tax, management) were projected to be Rs 5,858 for typical farmers and Rs 7,704 for resourceful farmers.

The cost of production at the market was estimated to be Rs 2,495 for average farmers and Rs 2,427 for resourceful farmers. The value of wheat bhoosa per acre was estimated to be Rs 9,150 for average farmers and Rs 6,000 for resourceful farmers. Net cultivation cost was estimated to be Rs 74,584 for average farmers and Rs 95,089 for resourceful farmers.

The Agriculture Policy Institute (API) informed the meeting that their calculations put the cost of producing the wheat crop for Rabi 2022–2023 at Rs2,495/40kg for the typical farmer and Rs2,427/40kg for the progressive grower.

The Pakistan Bureau of Statistics (PBS) recorded an average local wheat price of Rs2,776 in its reports for the months of April 2022 to September 2022, the ECC meeting was informed.