Although 2024 brought Pakistan an agricultural sector growth of 6.25%, the minimum support price (msp) of wheat in Punjab suffered state defaulting.
While the state government had promised 3,900 Pakistani rupees ($14) per 40 kg bag as the wheat msp, the plan somehow fell through.
The World Bank-supported msp of wheat has been helping local farmers who produce 75% of national wheat avoid middlemen.
After the program’s lag, farmers have had to accept 100 rupees ($0.36) less per 40-kg bag from brokers.
This at a time of a wheat surplus following a 2024 harvest of 31.4 million tonnes, up from 2023’s 28.2 million tonnes.
With such glut, farmers are ready to negotiate based on the supply and demand situation of an important grain. In fact, wheat makes up 2.2% of the national GDP and 9% of agricultural revenue, according to the Pakistan Tribune.
All in all, the Punjabi government is helpful to local growers in other ways such as the offer of free-interest asset loans.
One such scheme that benefits 2 to 4% of wheat farmers is the Green Tractor program. The scheme allocates 30 billion rupees ($$107.7 million) to largescale applicants to use tractors on their land via installment payments.
There is also the Kissan Card program, which advances half a million farmers a 30,000-rupee ($107.70) per acre loan.
For those who cannot join these programs, the msp issue still remains a thorn in their side for it is their last resort. Punjab’s Chief Minister Maryam Nawaz last set the minimum of 3900 rupees per 40 kg in April 2024.
Ultimately, such state minimum support price of wheat promises sometimes help Punjabi farmers escape price exploitation despite lack of fulfilment. To learn more on the wheat situation in Pakistan, skim the statistics below.
Pakistan Wheat and Minimum Support Price Statistics
Pakistan is a major wheat-producing nation, and ranked 8th worldwide in 2022, the third highest in Asia. As a whole, Pakistan produces between 26,208,672 and 28,160,500 tonnes of wheat, as of 2022 and 2023, respectively, per FAOSTAT. Despite being the second largest province among Pakistan’s four provinces, Punjab contributes 75% of this total, according to the state government. The state also enjoys minimum support price protection for wheat like the rest of Pakistan.
What is the recent history of wheat msp in Pakistan?
The Economic Coordination Committee first raised the price minimum by 15% to 1,600 rupees (at the then rate of $10) per 40 kg in late 2020.
How many hectares of wheat are there in Pakistan?
There were 8,976,900 hectares of wheat in Pakistan in 2022, a value which rose to 9,032,688 ha in 2023.
How much wheat do people in Pakistan consume per year?
Pakistan consumes 29,600,000 tonnes of wheat per year. This gives the country rank 6 in domestic consumption per nation, worldwide.
Which are the most popular wheat varieties in Punjab?
Pakistan’s Punjab plants various local strains such as Pervaaz, Inqlab-9a, Sehair and Miraj-08, among others.