The federal government has finalised the Wheat Policy 2025-26, setting the official procurement price at Rs. 3,500 per 40 kilograms, as Pakistan seeks to balance farmer incomes with international market trends and food security concerns.
The decision was made Sunday during a high-level meeting chaired by Prime Minister Shehbaz Sharif in Islamabad.
Fair compensation for farmers
The new policy, which aligns domestic wheat prices with global import rates, aims to ensure fair compensation for farmers while maintaining strategic reserves to stabilise national stocks.
Under the policy, the interprovincial movement of wheat will remain unrestricted, supporting nationwide availability. Oversight will be handled by a national committee led by the federal minister for national food security, with representatives from all provinces. The committee will meet weekly and report directly to the prime minister.
The move comes amid high pressure from provincial governments and farmer groups, particularly in Sindh, where Agriculture Minister Muhammad Bux Khan Mahar has called for a higher support price of at least Rs. 4,200 per 40 kg.
Also read: Punjab announces Rs5000 per acre for wheat farmers
Mahar warned that failure to offer a competitive price could prompt growers to abandon wheat in favour of more profitable crops, risking a potential food crisis.
The Pakistan Peoples Party’s Central Executive Committee has also urged the federal government to expedite the announcement of a minimum support price.
‘Wheat Cultivation Support Programme’
In a bid to support growers, the Sindh government has launched a Rs. 56 billion Wheat Cultivation Support Programme, offering subsidies of Rs. 24,700 per acre for fertiliser purchases to 411,000 small and medium-sized farmers. Over 132,000 farmers have registered for the scheme so far.
Prime Minister Sharif said the policy was developed in consultation with provincial governments, farmer associations, and industry stakeholders and pledged continued efforts to address the challenges facing the agriculture sector.
Expert analysis:
Experts believe that this is a significant step taken by the government, as it will help farmers to receive a good price for their produce. This initiative will also encourage wheat production.
A higher procurement price can incentivise farmers to produce more wheat, which is important for ensuring food security in Pakistan.
On the other hand, there are also some risks associated with it, including an increased burden on the government.
Also read: Punjab government lifts ban on wheat transport
The government will have to bear the cost of procuring wheat at this higher price, which could be challenging to manage with the resources.
But if the wheat is sold at market rates, consumers might face higher prices.
However, the government needs to balance this with its budget constraints and ensure that the procurement price doesn’t lead to increased prices for consumers.
