Pakistan eyes modern agricultural markets to cut Rs88bn crop losses

Mettis Link News reported that Pakistan wants to expand modern warehousing through electronic warehouse receipts, and has suggested creating a national spot market for farm produce. The idea would support safer storage, bank lending and clearer trade. SECP Chairman Dr. Kabir Ahmed Sidhu put forward the proposal at a conference hosted by PIDE, whose theme was "Mission $100 Billion."

He argued that agricultural market reforms are central to the wider economy, noting that agriculture accounts for 23.44% of GDP. Post-harvest losses are estimated at 20% to 40% of crops, and each 1% loss is worth about Rs88bn. Pakistan's approved warehouse space totals just 326,000 metric tons, against roughly 55.7 million metric tons of storable dry farm goods.

Under the plan, markets would link to an online trading platform, with provinces keeping oversight and the SECP providing technical support. Farmers could borrow from banks against stored crops using electronic receipts, and commodities such as wheat, rice, maize, cotton and sugar would join the spot trading gradually. Uniform quality, weight and grading rules, along with registered commission agents and digital transaction records, were also proposed to protect farmers and buyers.