Wheat prices plummet in Punjab as govt delays procurement

GOVT’S POLICY CAUSES DISTRESS AMONG FARMERS WHO FEAR HUGE FINANCIAL LOSSES AND A POTENTIAL DECLINE IN WHEAT PRODUCTION NEXT YEAR

Wheat prices in Punjab have plunged below Rs 3,000 per maund (approximately 40 kilograms) due to the provincial government’s failure to begin its procurement campaign.

This has caused significant distress among farmers who fear financial losses and a potential decline in wheat production next year.

Despite a record harvest this year, the Punjab government’s “poor strategy” for wheat procurement has stalled the process, leaving farmers with limited options. The government set a support price of Rs 3,900 per maund, but with no official buying in sight, prices in the open market have dropped to Rs 2,900.

Farmer organizations warn that these low prices could severely impact future production. They argue that failing to offer fair compensation for their crops will discourage farmers from planting wheat next season.

Punjab Food Minister Bilal Yasin stated on Friday that the current moisture content in the grain is as high as 18%, preventing his department from purchasing the produce. This high moisture level poses a risk of weight reduction upon drying, resulting in potential losses for the government.

Punjab Assembly Speaker Malik Muhammad Ahmad Khan highlighted that despite the government’s fixed minimum support price of wheat at Rs 3,900 per 40kg, the open market price stands at Rs 3,200. Growers hesitate to sell to the department due to uncertainty regarding procurement, unlike previous practices. He expressed concerns over billions of rupees held by middlemen instead of reaching the farming community.

On the other hand, opposition parties in the Punjab Assembly boycotted house proceedings on Friday to show solidarity with wheat growers and announced a protest from Monday against the government’s poor wheat procurement policy.

Liaqat Baloch, Deputy Amir of Jamaat-e-islami, criticised the government’s handling of the situation. He accused them of “worst blackmailing” and neglecting farmers’ needs.

The lack of government procurement has also resulted in a shortage of Bardana (grain sacks), further limiting farmers’ bargaining power in the private market, he said.

KPK TO BUY LOCAL WHEAT

In a related development, the Government of Khyber Pakhtunkhwa has decided to buy 300,000 metric tons of local wheat.

According to the provincial food minister, the government has fixed the price of wheat at Rs 3900 per 40kg and the government has decided to buy 300,000 metric tons of local wheat.

Food Minister Zahir Shah Toro said that Rs 29 billion have been allocated for the purchase of wheat, buying wheat at the local level will save Rs 9 billion.