Wheat Price Drop in Pakistan Causes Concern Among Farmers, May Lead to Wheat Crisis

Wheat prices in Pakistan have seen a significant decrease, with the price per maund dropping from Rs. 3,900 to Rs. 2,800. This decline in prices has caused great concern among farmers, who are now worried about their financial sustainability.

Many farmers have expressed fears that they may not grow wheat this season, which could lead to a potential wheat crisis in the future. Experts warn that the drop in prices could cause a reduction in wheat production, worsening the already critical food security situation in the country.

Hafiz Muhammad Hussain, a farmer from Tunza Sharif and former President of the Farmers Board Punjab, stated that he did not sow wheat on his 40-acre land this year due to the price drop. He explained that farmers had already faced significant financial losses due to the rising costs of essential farming inputs such as fertilizers, seeds, pesticides, diesel, and tractor services.

Hussain highlighted that the cost of a pesticide bottle has increased from Rs. 300 to Rs. 1,700, while the price of urea fertilizer has surged from Rs. 2,000 to Rs. 5,500 per bag. Diesel prices have also risen to Rs. 300 per liter, causing the overall cost of farming to increase by 600%. Despite these rising costs, the government has not compensated farmers adequately.

Hussain further stated that farmers are now focusing more on livestock farming or vegetable cultivation instead of traditional crops like rice, sugarcane, and chickpeas due to the low returns from these crops. He emphasized that the government’s failure to adjust wheat prices accordingly is pushing farmers to abandon wheat farming, which could exacerbate the wheat shortage in the future.

Chaudhry Iftikhar Ahmad Bhutto, former chairman of the Punjab Flour Mills Association, also criticized the government’s decision to set the wheat price at Rs. 2,800 per maund, down from Rs. 3,900. He noted that in 2023, the government had purchased wheat at Rs. 3,900 per maund and sold it for Rs. 4,700, also importing 3.5 million tons of wheat. Bhutto argued that the government should consider the cost of production for farmers when setting wheat prices.

In response to the price drop, flour mill owners have already observed a reduction in the price of flour. Muhammad Imran, the owner of Al-Imran Flour Mills, confirmed that the price of a 20kg flour bag has dropped from Rs. 3,200 to Rs. 1,700, following a 40% reduction in wheat prices. He warned that while flour prices may not drop further significantly, the government needs to consider the overall agricultural economy to avoid a future wheat crisis.

Experts agree that the government must reassess its policies and ensure that farmers’ production costs are met to prevent a wheat shortage and ensure food security in the country.