Wheat shortfall could cost $1.2 billion

Farmer representatives warn that Pakistan could be short of close to three million tonnes of wheat this season, a gap that could require imports costing about $1.2 billion in foreign exchange, according to The Express Tribune. The Pakistan Kissan Ittehad (PKI) blames three years of policy errors for growers' losses, which it estimates at Rs2,200 billion. The warning arrives as the Rabi sowing season approaches, with the body urging the state to act quickly.

The body says the support price, fixed at Rs3,900 per 40-kilogram maund by the ECC in March 2023, falls short of current production costs of Rs3,761 per maund. With a 25% profit margin included, PKI puts a realistic price nearer Rs4,702 per maund. Higher fertiliser, diesel and power costs, which farmers link to the Gulf conflict, Strait of Hormuz disruptions and the Russia-Ukraine war, have added to the squeeze.

Agricultural economists note that a lagging price alongside rising input costs could push growers to plant less wheat or switch to other crops. PKI also wants any phosphatic fertiliser subsidy widened beyond di-ammonium phosphate (DAP), since about 80% of such fertiliser used on wheat comes in other forms. It has asked the prime minister and the food security minister to publicly commit before the end of August to restoring the support price and procurement system.