Problematic food economy

The growing frustration of farmer organisations, particularly in Punjab, is not merely a dispute over the price of wheat. It is the latest manifestation of a deeper agrarian crisis.

At the centre of the growers’ anger is the wheat market. The government’s retreat from large-scale procurement has left farmers increasingly dependent on private buyers at a time when production costs have risen sharply. Farmers complain that fertiliser, electricity, diesel, machinery and labour have become substantially more expensive while the prices they receive for their produce have often failed to cover the cost of production.

The problem, however, extends well beyond wheat. Cotton, sugarcane, potatoes and other major crops, too, have suffered from combinations of poor yields, weather shocks, pest attacks, market gluts, delayed payments and policy uncertainty. Expensive irrigation and agricultural inputs have further eroded farm profitability, particularly for small and medium-sized growers.

The distress visible in the fields is also showing up in Pakistan’s external accounts. According to the Pakistan Bureau of Statistics, food imports surged by 11.66 per cent to $9.15 billion in FY26, from $8.2bn a year earlier. At the same time, food exports collapsed by 29.49pc to $5.02bn, compared with $7.12bn in FY25. The food trade deficit, which stood at roughly $1.08bn in FY25, widened by about 283pc — in a single year — to $4.13bn in FY26.

Pakistan remains largely a surplus-driven agricultural exporter rather than a systematic producer for specific international markets

Pakistan remains largely a surplus-driven agricultural exporter rather than a systematic producer for specific international markets

Palm oil imports alone cost the country $3.8bn in FY26, accounting for more than 41pc of the total food import bill. Import volumes increased by 8.36pc to 3.48 million tonnes. For decades, inadequate attention has been paid to developing domestic oilseed production. Canola, sunflower and mustard have the potential to reduce........

© Dawn Business