Islamabad: The Pakistan Business Forum (PBF) has raised serious concerns about the government’s wheat policy, urging immediate debate in the Council of Common Interests (CCI).
The forum warns that the government’s recent decision to abolish the wheat support price could lead to a looming crisis for both wheat farmers and national food security.
Key Points from the PBF’s Statement:
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Abolition of Wheat Support Price:
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The government’s decision to abolish the wheat support price has been criticized as hasty and misguided.
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PBF Chief Organiser Ahmad Jawad argues that the government has rushed into a free-market policy despite the fact that it still had time to meet conditions set by the International Monetary Fund (IMF).
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Last year’s poor import decisions already affected wheat farmers, and this year’s actions could deepen their losses.
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Pricing Gap Impact:
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The average wheat price in Punjab’s grain markets is about Rs 2,500 per maund, while the cost of cultivation is around Rs 3,200 per maund. This results in a consistent loss of about Rs 700 per maund for the past two years.
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This pricing gap is partly responsible for missing wheat cultivation targets for the current season.
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Impact on Farmers & Food Security:
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Wheat is essential for Pakistan’s food security and plays a critical role in the country’s agricultural economy.
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The PBF stresses that wheat is central to the financial cycle of farmers, and disrupting the wheat price system will negatively affect the entire agricultural sector, including other crops.
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The end consumers are already paying around Rs 5,800 per maund for flour, which is significantly higher than the price at the grain market.
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Read More: Punjab Farmers Protest Wheat Price Injustice
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Warning of Future Wheat Imports:
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The PBF warns that if corrective actions aren’t taken, the government may have to import wheat again by December, which would further strain the country’s foreign exchange reserves.
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Revisiting Last Year’s Import Decision:
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The forum also criticized last year’s decision to import 70 wheat vessels despite a forecasted bumper crop. This decision resulted in the outflow of over $1 billion from the country’s foreign reserves, a blow to Pakistan’s already cash-strapped economy.
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Call for Immediate Action:
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The PBF has called on the government to reconsider the wheat policy and bring the pricing issue before the CCI for thorough discussion and resolution.
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The forum emphasizes that without a comprehensive and transparent policy, the wheat sector will continue to face significant challenges, and Pakistan could face further imports, undermining food security and financial stability.
The PBF urges that the wheat support price system, which has been in place for over 50 years, should not be dismantled abruptly, as this could lead to significant negative consequences for farmers, food prices, and the overall economy.
Also Read: Punjab Unveils Rs15bn Relief Package for Wheat Farmers
They call for collaborative policy-making with stakeholders to ensure a sustainable and productive wheat market in Pakistan.
