With costs soaring and market prices falling below production levels, farmers demand an independent probe, fair pricing, and urgent reforms to prevent a wider agricultural and economic crisis
LAHORE: Pakistan’s wheat crisis is rapidly escalating into a potential nationwide agitation, as farmers in Punjab warn of mass protests over collapsing prices, rising input costs, and what they describe as years of policy missteps that have pushed the agricultural sector to the brink.
Addressing a press conference, Khalid Mahmood Khokhar, President of Pakistan Kissan Ittehad, issued a three-day ultimatum to the government, warning that farmers would be “forced onto the streets” if immediate corrective measures are not taken.
Billions in losses and a collapsing price structure
Khokhar claimed that wheat farmers have suffered cumulative losses of nearly Rs2,200 billion over the past two years, blaming inconsistent policies, delayed procurement, and market distortions.
The core issue lies in the widening gap between production costs and market prices:
- Estimated production cost (2024): Rs3,410 per maund
- Market sale price (2024): Rs2,700 per maund
- Market price (2025): dropped further to around Rs2,200 per maund
This sharp decline has left farmers selling wheat significantly below cost, raising serious concerns about sustainability and future crop cycles.
“Where is the minimum support price that was promised?” Khokhar questioned, highlighting the absence of a clear and enforceable pricing mechanism.
Procurement delays and private sector concerns
Traditionally, government procurement plays a critical role in stabilizing wheat markets in Pakistan. However, farmers allege that this year’s procurement process has been unusually slow and ineffective.
Khokhar stated that as of late April, government-designated private firms had not procured a single grain, creating panic among farmers who rely on timely purchases to recover costs and prepare for the next sowing season.
This delay has effectively pushed farmers into the open market, where oversupply has further depressed prices.
Policy missteps and lingering impact of imports
The current crisis is also being linked to earlier policy decisions, particularly the large-scale wheat imports in 2023. Farmers argue that these imports created excess supply in the domestic market, the effects of which are still being felt today.
Additionally, initiatives such as the Electronic Warehouse Receipt (EWR) system, designed to help farmers store produce and avoid distress sales, have failed to materialize at scale.
Experts note that without functional storage financing systems, farmers are forced to sell immediately after harvest—often at the lowest prices of the year.
Calls for accountability and structural reform
Pakistan Kissan Ittehad has demanded the formation of an independent, high-level commission—headed by the Speaker of the Punjab Assembly—to investigate the past three years of wheat policy decisions and assign responsibility.
Khokhar also called for the abolition of the Price Control Department, accusing it of inefficiency and harassment rather than meaningful regulation.
A broader agricultural and economic risk
Agriculture remains a cornerstone of Pakistan’s economy, contributing nearly 19% to GDP and employing around 38–40% of the labor force, according to national economic surveys.
Wheat, being the staple crop, is central not only to farmer livelihoods but also to national food security.
Experts warn that continued financial losses could lead to:
- Reduced wheat cultivation in upcoming seasons
- Increased reliance on imports
- Higher food inflation
- Rural economic distress
The situation is further compounded by rising input costs, including fertilizers, diesel, and electricity, which have significantly increased over the past two years.
Growing pressure on the government
With harvest season underway and market prices continuing to slide, pressure is mounting on federal and provincial authorities to announce a clear minimum support price (MSP), ensure timely procurement, and introduce policy stability.
Analysts suggest that without immediate intervention, the crisis could trigger widespread protests across Punjab—the country’s agricultural heartland—potentially spilling over into broader economic and political unrest.
The road ahead
As tensions rise, the coming days are seen as critical.
For farmers, the issue is no longer just about prices—it is about survival.
For policymakers, it is a test of credibility and crisis management. Whether the government responds with meaningful reforms or faces a full-scale protest movement could define Pakistan’s agricultural trajectory in the months ahead.
