Prime Minister Shehbaz Sharif on Friday set the illustrative price for wheat at Rs4,500 per maund for 2027, raising the procurement price set last year by Rs1,000.
“In view of the increase in production costs, the price had been raised by Rs1,000 per maund compared to last year,” a statement by the PM’s Office (PMO) said.
It quoted the premier as saying that the decision was taken with the guidance of President Asif Ali Zardari and PML-N President Nawaz Sharif and in consultation with the chief ministers of Punjab and Sindh.
The PMO statement added that the prime minister’s decision was aimed at “promoting agriculture sector in the country, protecting farmers’ economic interests and increasing wheat production next year”.
Moreover, the statement quoted PM Shehbaz as saying that the government’s objective behind increasing the proposed wheat procurement price was to provide relief to farmers amid rising production and fuel costs, as well as inflation pressure.
“Providing farmers with an incentive to cultivate wheat is among the key objectives of the decision,” the prime minister said.
He expressed hope that the new proposed price would help farmers cover their production costs and earn profit.
“Over the past years, farmers have faced financial difficulties due to inflation and rising agricultural expenses while Pakistan has also had to import wheat in the last two years,” he said, adding that the decision to increase the illustrative price would prove to be an important step forward in “strengthening the country’s food security, encouraging local production, and bringing stability to the agriculture sector”.
“The government expects that the determination of the proposed price will generate greater interest among farmers in wheat cultivation, resulting in ample sowing of wheat in the upcoming season and brighter prospects for increased national production.
“This step taken by the prime minister will prove to be an important milestone in the efforts to improve the economic well-being of farmers, stabilise the agricultural economy and make the country more self-reliant in meeting its nutritional needs. It is hoped that 2027 will bring positive results for Pakistan’s agricultural sector and its farmers,” the PMO statement said.
It added that the prime minister expressed gratitude to Punjab Chief Minister Maryam Nawaz for her cooperation in the consultative process for the decision, as well as to Sindh Chief Minister Murad Ali Shah for his cooperation.
The proposed price of Rs4,500 is still Rs500 less than the price demanded by farmers.
Last month, the Pakistan Kissan Ittehad demanded a Rs5,000 per 40kg support price for wheat, warning that farmers may not sow wheat for the next season if the government delays announcing crop policies.
The association had maintained that the farmers were unable to afford balanced fertiliser use because they were not recovering production costs.
In early October, Sindh CM Murad had approved the release of government wheat at the rate of Rs12,500 per 100kg bag from Oct 15 in order to stabilise flour prices and ensure its availability in the province.
On Oct 13, PM Shehbaz chaired the first National Agricultural and Food Security Council meeting and reaffirmed that the government wanted farmers to get a fair price for wheat and consumers to have affordable wheat.
During the meeting, he declared that wheat was available in abundant quantities to meet domestic needs, and vowed no leniency for hoarders.