Wheat Crisis Looms in Pakistan as Farmers Face Declining Prices and Reduced Harvest

Islamabad:Pakistan, an agricultural country with a large portion of its population dependent on farming, faces significant challenges in its wheat sector. Wheat is a staple food, used for making flour and animal feed, and grown extensively across the country, from Sindh to Khyber Pakhtunkhwa, on approximately 165,000 acres of land annually.

In the past, wheat prices saw modest yearly increases, often being sold at higher market prices than the government’s fixed procurement rate. To meet demand, Pakistan has also imported wheat from abroad multiple times. However, in 2024, due to the government’s decision to not buy wheat from farmers and large-scale imports of wheat during the caretaker government’s tenure, wheat prices drastically declined, falling from 5,500 rupees per maund to 2,600 rupees per maund.

Last year, Pakistan saw a record wheat harvest, with the government initially setting the wheat purchase rate at 3,900 rupees per maund. However, the government did not procure wheat from farmers, leading to a gradual decrease in prices. This left farmers frustrated and protesting across the country, as a wheat crisis emerged despite the country’s surplus production.

Because farmers did not receive the full price of 3,900 rupees per maund last year, they have reduced their wheat planting this year. Khalid Hussain Baath, Chairman of the Kisan Ittehad, stated that while 165,000 acres are typically sown with wheat every year, only 132,000 acres were planted this year. The rise in production costs, coupled with the government’s failure to set a fixed price, has contributed to this reduction in sowing. Additionally, the uncertainty caused by climate change and the lack of rainfall has also negatively impacted wheat production.

In an interview with a flour mill owner, the potential for a wheat crisis was discussed. Ahmad Ijaz, owner of VIP Flour Mills, explained that the primary buyer of domestically produced wheat is the government, which typically buys 4 to 5 million tons of wheat each year. However, the government did not procure wheat last year due to an ample supply in its reserves.

Currently, the government is providing wheat to flour mills at 2,900 rupees per maund, a price for wheat purchased two years ago. For the upcoming year, the government has decided not to buy any wheat, leading to expectations that wheat prices may range from 2,500 to 2,700 rupees per maund.

Ijaz further explained that if the government continues to refrain from purchasing wheat, farmers will face losses as their produce may not be sold at a fair price. However, he assured that the general public would not be affected, and there is no immediate risk of a wheat shortage or crisis in the country.