PRIME Minister Shehbaz Sharif has approved an indicative wheat price of Rs4,500 per forty kg, an increase of Rs1,000 over last year’s Rs3,500. The decision aims to encourage farmers to expand wheat cultivation, compensate them for rising production costs and strengthen the country’s food security. Given the persistent increase in the prices of agricultural inputs, fuel and other essentials, the increase was necessary to provide growers with a reasonable return on their investment.
A fair price is an important incentive for farmers to sow more wheat. However, the government must complement this measure with policies that make cultivation affordable. Fertilizers, pesticides, quality seeds and diesel have become increasingly expensive, putting considerable pressure on farmers’ earnings. The authorities should, therefore, keep a close watch on the prices of essential agricultural inputs, particularly fertilizers and ensure their availability at affordable rates. Without such measures, higher support prices alone may not translate into increased production or better yields. Supporting farmers is essential not only for rural prosperity but also for national economic stability. Pakistan’s reliance on imported wheat in recent years has placed additional pressure on its foreign exchange reserves.
Greater domestic production would reduce this dependence, conserve precious foreign exchange and strengthen the country’s capacity to meet its food requirements. No effort should be spared in providing farmers with the resources, guidance and incentives needed to achieve this objective. Equally important is ensuring that the announced price benefits farmers directly. Middlemen and other intermediaries must not be allowed to exploit growers or deprive them of a fair return. The government should establish a strict monitoring mechanism, with transparent procurement arrangements and effective oversight, to ensure that the wheat price reaches its intended beneficiaries. At the same time, protecting farmers’ interests must not come at the expense of consumers. The government should prevent hoarding, artificial shortages and profiteering that could push up wheat flour prices and burden ordinary households.