Pakistan Agricultural Coalition Proposes New Wheat Support Model for Farmers

The Pakistan Agricultural Coalition (PAC) has proposed an innovative wheat support model for farmers, extending warehouse receipt financing directly to growers. This approach allows farmers to retain possession of their wheat while borrowing against it for up to six months post-harvest, according to PAC CEO Kazim Saeed. The government would provide the financing facility and retain the first right to purchase the wheat, irrespective of market prices.

This model aims to address issues seen under Punjab’s wheat aggregator model, where attractive indicative prices were later undermined by weather-related losses and farmers' inability to retain wheat without permits. The government's move toward deregulating the wheat sector, with the International Finance Corporation (IFC) set to discuss this transition at the Agri Connections Conference and Expo, highlights the need for private sector involvement.

The conference, held in Lahore from October 1-2, will also address food affordability, climate risks, food safety, and agricultural investment. Saeed emphasized that food security has become a household-level issue in Pakistan, and agricultural exports remain below potential due to food safety concerns. The conference will explore various agricultural sectors, including livestock, shrimp cultivation, olive oil, chilled meat exports, and emerging businesses.