Lahore: Agriculturalists and businessmen are urging the government to implement a free market mechanism for wheat to eliminate confusion and ensure farmers receive fair prices for their produce.
Speaking to The Express Tribune, Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) Central Standing Committee on Agriculture Chairman Ahmad Jawad emphasized that the recent suggestion by the food department to the Punjab government—setting the support price at Rs3,000 per maund (40 kg)—might stabilize flour prices but could provoke farmers to protest.
“If this happens, farmers will take to the streets again. I suggest that the Punjab government must refrain from announcing an unviable support price for the upcoming wheat crop,” he stressed.
Jawad highlighted that the wheat support price, a costly subsidy introduced in 1968, drains hundreds of billions of rupees annually. This system benefits banks, the government, and flour mills but not the average farmer.
He pointed out that the wheat procurement system, where the government buys wheat from farmers at a set price higher than the market rate to encourage its cultivation, leads to significant borrowing from commercial banks by provincial governments.
Jawad urged the Punjab government to provide seeds and fertilizers at competitive prices to small farmers with landholdings up to 10 acres. This would incentivize increased wheat production to meet the growing population’s needs rather than relying on unrealistic support prices.
He also stressed the importance of strengthening the Ministry of National Food Security and Research (MNFSR). Despite agriculture being a provincial subject, the MNFSR plays a crucial role, especially in managing imports and exports, including wheat. Recent wheat market crises have underscored the ministry’s limited capacity, affecting domestic producers and consumers.
“Strengthening the ministry will ensure better management of critical agricultural resources and more stable markets,” emphasized Jawad.
Pakistan’s agricultural sector holds significant growth potential but faces challenges such as inefficiencies, an outdated product mix, and high losses during transport, storage, and marketing. Both domestic and international technologies are available that could quickly improve productivity.
