Punjab announces Rs15bn wheat support package amid farmer protests

The Punjab government unveiled a Rs15 billion package aimed at supporting wheat farmers facing falling prices during the harvest season, even as farmers staged protests across various parts of the province.

Chief Minister Maryam Nawaz asserted that the measures are intended to safeguard farmers from financial losses, noting last year’s price collapse due to wheat imports under the caretaker government.

Under the Wheat Support Fund, approximately 550,000 wheat growers will receive direct financial assistance through the Kisan Card. Additionally, farmers have been exempted from irrigation and fixed taxes for the current year. 

The provincial government also announced a four-month free Electronic Warehouse Receipt (EWR) storage facility to protect harvested wheat from climate risks and market volatility. Through the EWR system, farmers can store wheat and receive electronic receipts, enabling them to secure bank loans within 24 hours for up to 70% of the wheat’s stored value. 

Furthermore, the government has committed to covering markup payments on loans totalling up to Rs100 billion obtained from the Bank of Punjab by flour mills and green licence holders for wheat procurement.

The cabinet will soon consider making it compulsory for flour mills and green licence holders to purchase and store wheat at a minimum of 25% of their storage capacity. 

Additionally, Punjab plans to seek federal approval for the export of wheat and related products. The Bank of Punjab will finance private-sector efforts to renovate or construct warehouses to improve wheat storage infrastructure.

However, farmer representatives swiftly rejected the announced package. Pakistan Kissan Rabita Committee General Secretary Farooq Tariq termed it insufficient, stating farmers required a wheat procurement price of Rs4,000 per maund instead. He alleged the package primarily benefits large landowners rather than small farmers.

Farmers Itehad Chairman Khalid Hussain Baath described the package as advantageous only for mill owners and wealthy traders. He claimed the EWR system would fail small-scale growers lacking proper storage facilities and argued the government’s decision invited corruption rather than offering genuine relief.