Farmers seek restoration of wheat support price to Rs4,702 per 40kg

The Pakistan Kissan Ittehad (PKI) has called on the government to restore the wheat support price to Rs4,702 per 40kg, warning that weak production incentives could leave Pakistan facing a three-million-tonne wheat shortage and an import bill of around $1.2 billion.

 

PKI President Khalid Mahmood Khokhar, speaking at a press conference in Lahore, said ineffective agricultural policies over the past three years had caused estimated losses of around Rs2.2 trillion for farmers, while rising diesel costs, tube-well electricity tariffs, shipping disruptions and international geopolitical tensions have further increased production costs.

 

According to PKI estimates, farmers currently face a net production cost of approximately Rs3,761 per 40kg of wheat. The proposed support price of Rs4,702 includes a 25% profit margin, which the organisation says would provide farmers with sufficient incentive to bring unused farmland back into cultivation.

 

The farmers' body has set a target of 31 million tonnes of domestic wheat production and urged the federal government to announce the procurement policy and restore the support price by the end of August, allowing growers sufficient time to prepare for the upcoming Rabi season.

 

Fertiliser subsidy also sought

 

PKI has also urged the government to make any future fertiliser subsidy nutrient-based and applicable to all phosphatic fertilisers, rather than limiting support to DAP.

 

The organisation said around 80% of farmers use alternative phosphatic fertilisers, including Nitrophos, TSP, SSP, MAP, NP/NPS and NPK products. It argued that restricting subsidies to DAP could encourage market speculation and increase unnecessary foreign exchange spending on DAP imports despite adequate domestic availability of alternative fertilisers.

 

Food security and FX risks

 

The farmers' warning highlights a broader risk for Pakistan's food security and foreign exchange position. A significant decline in domestic wheat production could increase reliance on imports, potentially placing additional pressure on the country's external account.

 

PKI therefore wants the government to act before the Rabi sowing season by improving price incentives, finalising procurement policy and ensuring broader access to fertiliser support.