The Ministry of National Food Security and Research has urged Prime Minister Shehbaz Sharif to promptly announce a new wheat support price and set procurement targets. They warn that inaction could lead to a $1 billion wheat import bill. This urgency arises from the International Monetary Fund’s (IMF) stipulation that the government avoid intervening in agricultural markets.
Currently, farmers face uncertainty as there has been no indication of a new minimum support price for wheat. This lack of guidance complicates their decision-making, especially with the planting season approaching. The ministry cautioned that if the price is not set and procurement fails for a second consecutive year, it may deter farmers from cultivating enough wheat for local needs.
The IMF’s recent report indicates that the federal and provincial governments have agreed not to announce support prices for raw commodities and to limit procurement programs to essential food security needs. Finance Minister Muhammad Aurangzeb has committed to phasing out government price-setting for agricultural commodities by the end of the fiscal year 2026.
The food ministry has suggested that the Prime Minister announce a profitable support price while fixing procurement targets for the upcoming Rabi season in consultation with provincial authorities. They also proposed that if no support price is set this year, the government should procure wheat at market rates to stabilize the situation.
Despite last year’s fixed wheat support price of Rs3,900 per 40 kg, farmers have expressed concerns over the procurement policy and the market’s unpredictability, fearing a reduction in wheat planting for the Rabi 2024-25 season. The federal government currently holds a stockpile of 2.7 million metric tons, which is significantly higher than previous years, but farmers remain apprehensive about sowing less due to unclear policies.
To avert a potential decrease in the wheat sowing area, the food ministry stresses the necessity for immediate policy intervention from both federal and provincial governments, ensuring farmers have the certainty they need for informed decision-making.
