LAHORE: Agriculturalists and business leaders are urging the government to establish a free market for wheat to eliminate confusion and enable farmers to receive fair prices for their harvests.
Ahmad Jawad, Chairman of the Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) Central Standing Committee on Agriculture, noted that the food department recently informed the Punjab government that a support price of Rs3,000 per maund (40 kg) was deemed viable and could stabilize flour prices in the province.
Jawad warned, “If this occurs, farmers may take to the streets again. The Punjab government should avoid announcing an unrealistic support price for the upcoming wheat crop.”
He emphasized that the support price represents a costly subsidy, draining hundreds of billions of rupees each year. Introduced in 1968, this system benefits banks, the government, and flour mills, but often neglects the average farmer.
Describing the wheat support price as a larger issue than commonly understood, he explained that government procurement is intended to encourage farmers to grow this essential crop by offering them a price higher than the market rate. However, provincial governments frequently resort to borrowing from commercial banks to finance these operations.
Jawad called on the Punjab government to provide seeds and fertilizers at competitive prices to small farmers with landholdings of up to 10 acres, suggesting that this would incentivize increased wheat production to meet the needs of a growing population instead of relying on unrealistic support prices.
He also stressed the importance of strengthening the Ministry of National Food Security and Research (MNFSR), stating that although agriculture is a provincial matter, the ministry plays a vital role in managing imports and exports, including wheat. Recent crises in the wheat market have revealed the ministry’s limitations, leading to adverse effects for both producers and consumers.
“Strengthening the ministry will facilitate better management of essential agricultural resources and create more stable markets,” Jawad stated.
Despite the immense growth potential of Pakistan’s agricultural sector, it remains hindered by inefficiencies, an outdated product mix, and significant losses during transportation, storage, and marketing. Fortunately, both domestic and international technologies are available that could rapidly enhance productivity.
