The Punjab government has launched a Rs15 billion wheat support package to aid farmers grappling with low wheat prices during the 2025 harvest season. This move comes as farmers across the province stage protests, demanding better financial support and fair pricing for their crops.
Chief Minister’s Commitment to Farmers
Punjab Chief Minister Maryam Nawaz emphasized that the package aims to shield farmers from financial losses, particularly after last year’s price crash triggered by wheat imports under the caretaker government. “Farmers are our brothers, we stand with them and always will,” Nawaz said, highlighting her commitment to agricultural stability.
Key Features of the Wheat Support Package
The package, designed to benefit around 550,000 wheat farmers, includes several measures to ease financial burdens and improve market access:
- Direct Financial Aid: Farmers will receive support through the Kisan Card under the Wheat Support Fund, ensuring quick access to funds.
- Tax Exemptions: Irrigation and fixed taxes are waived for the current year, reducing costs for growers.
- Free Storage Solution: A four-month Electronic Warehouse Receipt (EWR) facility protects wheat from climate risks and market fluctuations. Farmers can store their produce and obtain electronic receipts to secure bank loans worth up to 70% of the wheat’s value within 24 hours.
- Loan Markup Support: The government will cover markup on loans up to Rs100 billion taken by flour mills and green license holders for wheat procurement, with Rs5 billion allocated for storage-related payments.
- Mandatory Procurement: The cabinet is set to review a proposal requiring flour mills and license holders to purchase and store wheat at 25% of their capacity.
- Wheat Exports: Punjab plans to seek federal approval to export wheat and related products, aiming to stabilize prices.
- Storage Infrastructure: The Bank of Punjab will fund private-sector efforts to build or upgrade wheat storage facilities, enhancing long-term capacity.
These steps aim to address immediate financial challenges while building a stronger framework for wheat farming in Punjab, a key agricultural hub in Pakistan.
Farmer Protests and Criticism
Despite the government’s efforts, farmer groups have voiced strong objections, arguing the package falls short of their needs. Protests have erupted across Punjab, with growers demanding a minimum wheat procurement price of Rs4,000 per maund to cover rising input costs.
Farooq Tariq, General Secretary of the Pakistan Kissan Rabita Committee, called the package inadequate, claiming it primarily benefits large landowners over small-scale farmers. “What farmers need is a fair price, not temporary relief that favors the wealthy,” Tariq said.
Khalid Hussain Baath, Chairman of Farmers Ittehad, echoed these concerns, criticizing the EWR system as impractical for small farmers who lack access to proper storage facilities. He also accused the package of favoring mill owners and influential traders, alleging it opens the door to corruption. “This isn’t relief, it’s a system that benefits flour mills and green license holders while leaving farmers vulnerable,” Baath stated.
Mill Owners’ Critique and Market Dynamics
The mandatory procurement requirement for flour mills has sparked debate. Some mill owners argue that the 25% storage mandate could strain their operations, especially without clear pricing guidelines. They also question the EWR system’s effectiveness, citing logistical challenges in scaling it across Punjab’s diverse farming communities.
The package’s focus on financial aid and irrigation support has been welcomed by some, but critics argue it lacks a long-term strategy to address market volatility and climate change impacts. The absence of a fixed support price remains a major sticking point, fueling distrust among farmers.
Looking Ahead
As Punjab navigates this wheat crisis, the government’s push for federal approval to export wheat could open new markets, potentially easing surplus concerns. However, the success of the Rs15 billion package hinges on its ability to deliver tangible benefits to small farmers and address the criticisms from both growers and mill owners.
With protests ongoing, dialogue between the government and farmer representatives will be crucial to finding a balanced solution. Chief Minister Nawaz has pledged to continue supporting farmers, but the path forward remains uncertain.
What are your thoughts on Punjab’s wheat support package? Share your views in the comments below and join the conversation on how to better support Pakistan’s farmers!
