Farmers in Punjab face severe challenges in selling wheat at the government’s official rate of 3900 PKR per maund. Current market conditions have reduced prices to as low as 3000 PKR per maund, below the support price.
A Punjab Disaster Management Authority (PDMA) storm alert has worsened the situation, particularly in districts like Rajanpur, where official procurement has yet to begin, leaving harvested wheat vulnerable to the elements.
Malik Ahmed Khan, Speaker of the Punjab Assembly, highlighted that wheat currently trades at 3200 PKR per bag in the markets, well below the stipulated 3900 PKR. He pointed out that middlemen hold up a substantial amount of money owed to farmers and that mills are delayed in making payments. Khan also noted the Food Department’s lack of capacity to store the burgeoning wheat harvest, compounded by large imports and existing old stocks in warehouses.
Farmer organizations have warned that wheat cultivation may be reduced next year unless the government resolves these issues.
Local farmers claim that while the costs of wheat cultivation have remained high, the selling prices have drastically fallen. Wheat prices ranged from 5000 to 5500 PKR per maund at the time of sowing, with significant expenses involved in fertilization, irrigation, and land preparation.
Farmers accuse the Food Department and Pakistan Agricultural Storage and Services Corporation (PASSCO) of collusion, alleging that intermediaries exploit the system by buying cheap wheat from the market and selling it back to PASSCO at higher rates.
The Food Department acknowledged that approximately 10% of the wheat harvest is lost annually due to transportation issues. Punjab’s Food Minister, Bilal Yasin, stated that the government has not started its official wheat purchasing campaign due to insufficient reserves.
