Wheat price dilemma
THE announcement of an indicative wheat price of Rs4,500 per 40 kilograms may have come too late for Sindh farmers, but it is welcome as far as it goes. That is not far. The figure is Rs1,000 higher than last year’s and, by the government’s account, reflects rising production and fuel costs. It is also Rs500 short of what farmers demanded. And there is no word on who will buy the grain or when.…
The recently announced indicative wheat price of Rs4,500 per 40 kilograms is a step in the right direction for Sindh farmers, although it falls short of their expectations. This price represents a Rs1,000 increase compared to last year and is Rs500 below what farmers had demanded. However, the government's announcement only serves as a signal, not a guarantee, and does not specify who will purchase the grain or when.
Farmers have been anticipating a market-based system that would better support them since April 2025, when the government abandoned the support price and halted large-scale procurement. Yet, despite this change, the crop now being cultivated is the third to enter the ground without a minimum price guarantee. In Punjab, this lack of a procurement price, even when announced, has proven ineffective.
The province attempted to revive purchases through bank-backed private aggregators, but due to banks' doubts about the scheme's viability, only 160,000 tonnes were bought, far below the 2.5 million tonne target. As a result, prices continued to decline.
Farmers appear to have recognized this reality before the government did. Meanwhile, consumers are not spared from the impact of rising wheat prices. Over the past five years, wheat prices have climbed by 150%, directly affecting the cost of flour. In Punjab, flour is now selling for Rs160-190 per kilogram, posing a significant burden on low-income households.
Even Sindh's government wheat sales, which began this month at Rs12,500 per 100kg (Rs5,000 per 40kg), are more expensive than the prime minister's offer to farmers. The ultimate test of wheat reform is not the government's ability to exit the market but whether the resulting system fairly shares risk among farmers, traders, millers, banks, and the state, maintains affordable flour prices, and safeguards the nation's food supply.
Currently, farmers bear the majority of the risk while all other stakeholders focus on their own interests. With sowing already underway, the government should clearly state what it intends to purchase, through which agency, at what cost, and by what deadline. It should also adjust its imports accordingly and consider the cost of fertilizers and other inputs rather than relying solely on prices.
Most importantly, the government should directly assist low-income households instead of artificially keeping flour prices low by undervaluing farmers' efforts. An indicative price without a committed buyer is merely a number, and a market that benefits only one side is not worth defending.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
