The recent wheat crisis in Pakistan stems from two main factors: the Punjab government’s abrupt exit from the market, allowing private sector exploitation, and extended import permissions overlapping with the domestic harvest period.
The Punjab government’s decision to withdraw was sound in principle but poorly executed. Economists recommended a gradual phase-out over 3 to 5 years focused on small-scale growers to address inefficiencies in procurement, storage, and resale. Last year’s procedural costs were estimated at 199.75 billion PKR, excluding warehouse rentals. The procurement policy failed to boost productivity or stabilize prices, and led to a 680 billion PKR debt for Punjab.
The abrupt withdrawal has severely impacted farmers, risking reduced wheat cultivation and increased reliance on imports. Pakistan, despite being the 8th largest producer, ranks 56th in yield per acre. Improving productivity should be prioritized, with saved procurement costs reinvested in high-quality seeds and affordable inputs.
Interprovincial trade mismanagement and lack of data-sharing exacerbate the crisis. Punjab’s border sealing with Sindh and KPK hindered healthy competition and market stability. Provinces must cooperate and share information to protect farmers and stabilize the market.
Government should encourage contract farming and invest in efficient machinery. Climate change, despite challenges, offers opportunities for expanding wheat cultivation in arid regions with proper water management.
Finally, consistent criteria for determining annual wheat needs are essential to avoid import decision disparities. Addressing these issues is crucial for sustainable wheat production and preventing future crises.
More at : Sustainable wheat crop: strategies – Opinion – Business Recorder (brecorder.com)
