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Any domestic support price at the initial equilibrium price would have to increase proportionally not to become ineffective.
In Pakistan, Agriculture Policy Institute (API), ministry of food and agriculture usually recommend the government about wheat support price.
The problems that the growers face from the sugar mills is refusal to buy their crop, delayed lifting, delayed payment or lower than the support price.
The support price for wheat crop 2014 in Khyber Pakhtunkhwa has not been announced, despite the fact that the input cost has increased manifold because of rise in prices of pesticides, electricity and fertilizers.
Minister for Food Security, Sikandar Bosan said that prices of potatoes would be lessen after 15 days as new crop would come to market with in stipulated time period, adding he said that provinces are not cooperating to fix support price of wheat.
said that they had already set up two markets and so far they have received no such complaint that farmers are selling their produce below the minimum support price (MSP).
However, it took from July 2004 to early 2005 before market prices fell in line with lower support prices, and cheese prices have still not responded to the lower levels for butter and powders.
The package includes increase in support price of wheat by 30 per cent from Rs.
Shoukat Ayub, President Kissan Council said that decision of increase in the support price of wheat to Rs 1,300 per 40 kg, slapping of 20% regulatory duty on its import, and decrease in the petroleum prices particularly of diesel, would greatly benefit the farmers enabling them to earn an estimated extra income of Rs 3,5005,000 per acre.
But the government did not honour the demand of the farmers and decided to maintain the wheat support price at existing level of Rs.
The JI Ameer said, the government had not announced the support price of wheat so far due to which the growers were disturbed and the wheat cultivation could be affected.
We have agreed to states of Kerala that we will give them food grains under the Minimum Support Price (MSP).

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