LAHORE:
As Pakistan’s wheat harvest season gains momentum, farmers in Punjab and across the country are getting extremely worried about the losses they are facing due to the federal government’s decision to abolish the wheat support price, a policy in place for over five decades.
The move, attached with conditions under the International Monetary Fund (IMF)’s 2023 Extended Fund Facility (EFF) agreement, has sparked indications of a deepening agrarian crisis, with stakeholders fearing long-term repercussions for food security and rural economies.
Almost all agricultural areas are asking the government to immediately reinstate the support price mechanism, citing alarming disparities between production costs and market rates. According to Pakistan Business Forum (PBF) Chief Organiser Ahmad Jawad, the average wheat price in Punjab’s grain markets hovers around Rs2,500 per maund (40 kg), while the cost of cultivation has surged to Rs3,200 per maund. This leaves farmers with a loss of Rs700 per maund, compounding losses sustained over the past two years.
“The government rushed into adopting a free market policy despite having another year to negotiate terms with the IMF,” Jawad said, adding, “Without stakeholder consultation, this abrupt shift has left farmers vulnerable to exploitation by middlemen and market fluctuations.”
In Punjab, which contributes over 75% of Pakistan’s wheat, the 2025 harvest has been marred by frustration. Initial estimates suggest the province will produce 19.5 million tonnes (MT) of wheat this season, falling 12% short of its 22 MT target. Overall wheat production in Pakistan is also estimated to be at 27.9 MT, a figure almost 11% less than the original estimates of 31.4 MT. Farmers attribute the shortfall to rising input costs, including fertilisers and diesel, coupled with the absence of guaranteed pricing.
Muhammad Aslam, a small farmer from Multan district, described the situation as ‘disastrous’ for him and other growers. “Last year, I sold wheat at a loss. This year, with no support price, traders are offering Rs2,100 per maund, an open market price which is nearly Rs1,200 per maund less than the original cost of production. How do I repay loans or feed my family or even cultivate the next crop?” he asked.
“We were promised support, but now we’re abandoned. The government imported wheat last year despite a surplus. Now they’re letting us drown through their policies,” Aslam added.
The abolition of the wheat support price aligns with the IMF’s 2023 agreement, which pushed for reduced state intervention in agriculture. However, critics argue the transition was poorly timed. Last year, the government’s decision to import 3.5 million tonnes of wheat at a cost of $1 billion, despite a projected bumper crop, led to a surplus, crashing local prices and inflicting losses on farmers.
Pakistan Kissan Ittehad President Khalid Mahmood Khokhar criticised the inconsistency. “The Punjab CM vowed to protect farmers before sowing season. Where is that support now?” he said. Khokhar noted that this year’s production cost stands at Rs3,304 per maund, but market rates currently remain between Rs2,000-2,200. “This isn’t a free market. The government still fixes flour prices, violating IMF terms anyway,” he added.
Farmers also face punitive measures for selling above state-mandated rates. In 2024, Punjab’s Food Department capped wheat prices at a maximum of Rs2,675 per maund in some districts, filing FIRs against those who sold at Rs2,800. “When our costs are Rs3,400, how can we sell for cheaper? The policies punish us for surviving,” Khokhar said.
However, the PBF has called for the issue to be elevated to the Council of Common Interests, warning that without intervention, Pakistan may need to import wheat by December 2025, further straining foreign reserves. Jawad emphasised that wheat is the basis of rural economies, and its destabilisation could ripple through other crops like cotton and rice.
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