Support Prices:
The Economic Coordination Committee (ECC) announced on 2nd July 1999 an increase in the support prices of various varieties of paddy in the range of 5.26-6.06 percent for FY00.

The Government announced on 23rd November 1999 an overall increase of 25 percent to Rs 750 per 100 kgs in the support/procurement prices of wheat for FY00 crop from Rs 600 per 100 kgs which was fixed in FY97.

The Government announced a new cotton policy on 13th April 2000 for FY01. The salient features of the new policy are: a) the Trading Corporation of Pakistan (TCP) will continue to play its role as a second buyer and purchase seed cotton (phutti)/lint cotton to ensure better return to growers; b) the Corporation will enter in the market for the purchase of seed cotton/lint at such time and for such quantity as determined by its commercial interests; c) it will lift such quantities of phutti/lint if the price dropped below Rs 725 per 40 kgs for premium quality; d) export of cotton by private sector and TCP will be allowed from the beginning of cotton season and all export contracts will have to be registered with the Export Promotion Bureau; e) the Ministry of Food, Agriculture and Livestock will introduce cotton grading and standardization system at ginning stage from 30th June 2000; and f) profit earned by TCP will be spent on the welfare of growers. Further, import of cotton would continue as per existing rules and procedures.

Other Measures:
The ECC fixed on 19th August 1999 the minimum export price of onion at Rs 10 per kg. It was reduced to Rs 7 per kg on 8th September 1999. On the reports of bumper crop the government totally withdrew it on 4th December 1999.

The State Bank of Pakistan reduced mark-up rate on commodity operations from 16.5 percent to 12 percent on lending to the Federal and Provincial Governments for buying of agricultural crops and inputs w.e.f. 1st April 2000. The previous rate of mark-up on such loans was fixed in July 1997.

The Government on 23rd November 1999 directed the Agricultural Development Bank of Pakistan (ADBP) to defer the principal repayments for Kharif loans up to Rs 50 thousand in each case for six months.

To help boost wheat crop, WAPDA announced on BOth January 2000 an incentive package containing deferment in payment of electricity bills of private agricultural tube wells all over the country up to 31st May 2000. No extra charges will be levied as mark-up or late payment dues. Earlier, it had reduced the power tariff by 56 percent for private agricultural tube wells effective from 16th December 1999. WAPDA would bear Rs 4 billion fi'om its own resources for providing this subsidy.

Sindh Government notified and promulgated on 7th November 1999 the Sindh Fertilizers (Control) Rules 1999 under which all dealers and stockiest of fertilizers are required to obtain license for sale, distribution and stocking from the Director General, Agriculture Extension, Sindh. This step has been taken to check the malpractices in its marketing being undertaken by some of the fake dealers.

The ECC decided on 21st December 1999 to impose regulatory duty of 10 percent on the import of urea fertilizer to protect the domestic producers of urea fertilizer.

In February 2000, the European Commission granted the Marine Fisheries Department the status of verifying and certifying agency in Pakistan for import of seafood in. European Community (EC) member countries. Under the decision, the provision of legislation of Pakistan on health inspection and monitoring of fishery products will now be considered equivalent to those laid down in EC.

The Government announced in its Economic Revival Program on 15th December 1999; i) to ensure the tax on agricultural incomes; ii) to distribute agricultural land among landless peasants; and iii) to revitalize food stamps scheme (Appendix I).