Global Rice News

The ongoing wheat crisis in Pakistan continues to adversely affect farmers, leading to debts, higher interest rates, decreased crop yields, and significant losses. Despite exporters offering to sell excess grain in the global market to alleviate the situation, the government has yet to decide on a course of action and is currently assessing available wheat stock. Exporters have requested permission to export 3.9 million tonnes of wheat, but Pakistan has not exported wheat since FY20.

An X post by climate activist Maryam J highlights the dire situation faced by farmers and suggests potential solutions, including supporting farmers in purchasing seeds for rice crops to avoid further financial crises. Maryam emphasizes the importance of each farming season for landless farmers, as agriculture plays a significant role in Pakistan’s economy.

The wheat crisis stems from the Pakistan wheat import scandal of 2024, where the caretaker government imported a substantial quantity of wheat despite existing surplus stocks, resulting in a loss exceeding 300 billion Pakistani rupees to the national exchequer. Former finance minister Miftah Ismail suggests that the government should refrain from setting wheat prices and instead focus on providing financial aid, loans, subsidies, and necessary resources to farmers while allowing the market to determine rates.

Traditionally, the Pakistani government purchases wheat directly from farmers, monitors supply levels, and ensures market stability by distributing wheat to flour mills and consumers through public utility stores. However, this year has been different due to private sector wheat imports following the 2020 floods, which led to an oversupply of wheat and a subsequent decrease in prices. Farmers faced difficulties in selling their produce at the minimum support price, triggering widespread protests across Pakistani cities.

The farmers find themselves trapped in a cycle of dependence on the government, as their profitability and ability to buy seeds for future harvests are tied to the government’s wheat purchases. Agriculture accounts for nearly 23 percent of Pakistan’s GDP, with wheat contributing 2 percent to the total. Maryam Nawaz previously denied allegations of corruption and a wheat crisis, while Shehbaz Sharif promised to address the issue through a high-level committee.

Ironically, the Pakistani government has now refused to purchase wheat from farmers to prevent corruption. This decision has raised concerns among X users, with some criticizing the government’s actions and predicting potential food scarcity. The situation calls for attention and support from the public to alleviate the hardships faced by farmers.

Source: The Print