Govt Increases Minimum Support Price for Wheat

To achieve self-sufficiency in wheat, the government has decided to increase the minimum support price for wheat to Rs 1,950/40 kg compared to Rs. 1,800/40 kg last year. The Food Ministry hopes this will incentivize farmers to grow sufficient wheat to meet the national production target of 28.90 million mt.

Due to much higher international prices of DAP fertilizer and shipping costs, the domestic price (Rs. 7,300/bag) has also increased significantly. But, the price of urea (Rs. 1,850/bag) is stable and significantly lower than the international price (Rs. 5,400/bag) because the government provides Rs. 126 billion annual subsidy for natural gas.

The government is working closely with the fertilizer companies to ensure adequate availability of both key fertilizers during this Rabi season. Moreover, the government has provided over Rs. 16 billion for fertilizer, seed, pesticide, agricultural loan markup subsidies. These timely initiatives have helped generate record production of many commodities.

The ministry lauded the hardworking farmers, saying they have produced record crops this year. Pakistan has achieved the highest ever production of wheat (27.5 million mt), rice (8.4 million mt), maize (8.5 million mt), mung beans (0.275 million mt), onion (2.3 million mt), and potato (5.7 million mt), while sugarcane achieved the second-highest production (81 million mt).

In 2021-22, the sugarcane production is estimated at 87.67 million tons; 8% higher than that of last year. Rice production is estimated at 8.84 million tons which is 5% higher than that of last year. Maize production is estimated at 9.0 million tons which is 8.5% higher than that of last year while the cotton production as of 1 November 2021 is 6.2 million bales compared to 3.4 million bales (82% higher) at the same date last year.

Source: Pro Pakistani

Rupee Gains Big Over the British Pound, Holds Out Against the US Dollar

The Pakistani Rupee (PKR) maintained its position against the US dollar (USD) on Friday to close at 170.01.

Yesterday, the rupee broke its 6-day winning streak against the greenback and lost 4 paisas in the inter-bank market to close at Rs. 170.01.

The PKR traded between Rs. 170.12 to the USD and Rs. 169.85 to the USD on Thursday before closing at Rs. 170.01 to the USD, as compared to Wednesday’s (November 3) closing at Rs. 169.97.

The rupee maintained its stride against the dollar as reserves held by the central bank increased by 0.3 percent or $53 million to $17.199 billion. The reserves of commercial banks dropped to $6.726 billion from $6.787 billion. It bears mentioning that Pakistan’s foreign exchange reserves have slightly fallen to $23.926 billion in the week that ended October 29 from $23.934 billion, the State Bank of Pakistan stated on Thursday.

The former Treasury Head of Chase Manhattan Bank, Asad Rizvi, explained on Twitter that the net forex reserve was up by $53 million, even though “The updated data did not include [the] $3 billion Saudi deposit, probably it will be shown in next week’s update after receiving the credit in SBP account.”

“PKR is expected to take a breather due to [the] weekend in M/E”, he added.

The local currency lost 11 paisas against the Euro, gained 63 paisas against the Canadian Dollar (CAD), and 67 paisas against the Australian Dollar (AUD).

It also appreciated by Rs. 2.36 against the Pound Sterling (GBP).

In contrast, it remained stable against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED).

Source: Pro Pakistani