Pakistan Agriculture is witnessing history’s toughest time as farming community is experiencing double sword losses; on one front cost of crops production has doubled since 2023; while commodity prices of major crops (wheat, cotton & maize) have slashed by 25% on an average basis. Cumulatively, both these aspects have rendered the farming business unviable.
| Crop | Prod. (mill. tons) | Prices in 2023 | Prices in 2024 | Loss / md | Total Loss |
| Wheat* | 29.30 | 3,900 | 3,000 | 900 | 659.25 |
| Cotton – PHUTTI** | 2.28 | 8,500 | 6,000 | 2,500 | 142.50 |
| Maize*** | 10.30 | 2,850 | 2,050 | 800 | 206.00 |
| Total | ~1,007 | ||||
| * Govt. support Prices | ** Govt Indicative Prices | *** Open Market Prices | |||
| Financial hit to the farmers due to black marketing by the dealers in 2023 | |||
| Urea consumption (mill. Ton) in 2023 | Urea MRP/bag Jan to Dec -2023 | Farmers purchase price in 2023 Rs 4000/bag | Impact of Black-marketing (PKR Billion) |
| 6.65 | 2440 – 3400 | 4700 | ~150 |
During 2023, said Pakistan Kissan Ittehad President Khalid Khokhar, farmers paid huge amount of PKR 300 billion (over and above to the MRPs, prescribed by the fertilizer industry) to the market exploiters on account of black marketing of urea. Despite continuous hue and cry by the farmers, the Govt. failed to implement its writ to ensure availability of urea on prescribed MRP to the farmers. Despite these failures, he said, farmers put their best to ensure national food security by increasing area under wheat cultivation and per acre productivity, thus ensuring total national production of over 29 million tons – a record high production.
Keeping in view of all these adversaries, farmers were expecting relief from the government through an increase in the support price of wheat – a minimum of PKR 4000 / 40kg. However, instead of addressing the famers’ agony, the Govt. took the surprising step of importing huge quantities of wheat just ahead of the arrival of the wheat harvest, which caused a crash in wheat price in market from PKR 3900 to PKR 3000 / 40 kg. Secondly, another govt hit another unprecedented blow to the farmers by increasing gas prices, causing an increase of urea price by around PKR 1000/bag. This step by the govt. shows policy makers have used the black-marketing tool as an opportunity by assuming that farmer communities may absorb this hike in urea price.
“The present situation does not reveal a viable preposition for the farming business. The grievances of the farmers are piling up with the passage of every cropping season. If not addressed timely, this may pose a serious consequence to the national food security and economic prosperity of the country. Cotton contributes more than 60% to the total national exports and is under serious threat as farmers are not able to invest to cultivate cotton in the current cropping season.”
Following are the recommendations for federal and provincial govts:
- To stabilize wheat prices at Rs 3900/40kg, Punjab Govt. should immediately start procurement of 2 million tons of wheat. Punjab contributes more than 75% to the national wheat production.
- The Federal Govt. should intervene to ensure urea up to Rs. 4000/bag across Pakistan contrary of the current market price of around Rs. 5000/bag.
To avoid foreseeable protests by the farmers, Pakistan Kissan Ittehad urges provincial & federal Govt. to take immediate actions to address the genuine issues of current wheat support price and availability of urea at affordable price of Rs 4000/bag across Pakistan – An issue pending since long with federal Government.
