Business forum urges govt to reconsider wheat price policy amid crisis fears

The Pakistan Business Forum (PBF) criticised the government’s recent wheat policy decisions, calling for an immediate reconsideration by the Council of Common Interests (CCI) amid fears of an impending crisis.

In a statement, the forum expressed concerns over the government’s abrupt move to abolish the wheat support price, emphasising the potential risk to national food security as the harvesting season gets underway. 

The group argued that the decision, made without thorough stakeholder consultations, could severely impact wheat farmers who already faced losses from poor import decisions made last year.

PBF Chief Organiser Ahmad Jawad questioned the timing of the policy shift, noting the government still had another year to fulfil the conditions required under the International Monetary Fund (IMF) programme. 

He stressed that the existing average market price of wheat in Punjab stood around Rs2,500 per maund, considerably lower than the cultivation cost of approximately Rs3,200 per maund, resulting in sustained losses for farmers over the past two years.

Jawad added that the government’s decision undermined wheat farmers at the very start of their financial cycle, which could negatively affect subsequent crops. 

The forum also highlighted concerns that the removal of the 50-year-old wheat support pricing system could enable middlemen to exploit farmers further, noting consumers were already paying significantly high prices for flour, approximately Rs5,800 per maund.

PBF called for an urgent discussion on the wheat pricing issue at the CCI, warning that failure to take immediate corrective action could force the government into importing wheat again by the end of the year. 

Jawad reminded authorities of last year’s controversial decision to import 70 vessels of wheat despite forecasts of a bumper crop, a move that cost the national economy more than a billion dollars in foreign exchange reserves at a critical time.

The forum urged the government to act swiftly, emphasising the importance of wheat as a staple food crop critical for Pakistan’s food security and agricultural economy.