Wheat support price to be fixed at PKR 1,150/40 kg – Alfalah Securities Limited

Karachi: The govt. is likely to fix the new wheat support price at PKR 1,150/40-kg from the previous price of PKR 950/40-kg on account of a significant rise in important input prices such as urea, DAP, pesticides, seeds and petroleum products which has made wheat cultivation to incur huge losses for the farming community.

According to Alfalah Securities Limited, the wheat support prices have increased significantly from PKR 650/40 kg to PKR 950/40 kg in a span of 4 years while, the cost of inputs have increased by a massive 100-300%. After a hike in wheat support prices by PKR 200/40-kg, the prices of wheat flour would also increase by PKR 6/kg as a subsequent impact and would bring a jump in food inflation. Alfalah Securities Limited expects this hike would bode well for the farming community as their purchasing power would improve and would enable them to purchase the already expensive urea.