Rethinking wheat policy
Wheat in Pakistan is not just a crop; it is politics, survival, and the government’s most stubborn obsession. It provides over 40 percent of daily caloric intake for households, sustains millions of farming families, and directly influences food security, and inflation.
Every year, as crop sowing season nears or harvest is ready, policymakers dust off the same outdated playbook: fix support prices, push farmers into induced wheat cultivation, restrict imports until shortages hit, and then scramble for costly emergency off-season imports. This cycle has turned Pakistan’s wheat policy into a permanent crisis-management exercise rather than a strategy.
The results are familiar—chronic shortages, smuggling to neighboring countries, hoarding by opportunists, rising flour prices, and an endless fiscal burden on provinces and the federal government. Despite being an agrarian country, Pakistan spends billions of dollars annually on wheat imports and subsidy. Yet our farmers remain poor, our consumers face food inflation, and the state bleeds resources.
Last year 2024, government promised MSP of Rs3900 per 40kgs but due to ample previously imported wheat stocks in warehouses, no storage space was available, Punjab government did not procure wheat from growers during the harvest season started. The government allowed private sector to procure wheat. Due to a bumper crop and Punjab government’s last moment exit from procurement, wheat prices were crashed from Rs3900 to Rs1800 per 40kgs.
IMF also forced government to stop ‘Minimum Support Price’ and wheat procurement due to mounted chronic commodity circular debt, as policy is flawed, bears no fruits for consumers, growers and entire subsidy goes into deep pockets of ultimate grinders and flour millers.
Last year, the government did not procure wheat was a good decision but did not open import........
© Business Recorder
