Pakistan Could Face 3 Million Ton Wheat Shortfall Without Support Price

Pakistan could face a wheat shortfall of up to 3 million tons that may force the administration to spend around $1.2 billion on imports unless urgent policy measures are introduced before the upcoming Rabi season, according to the Pakistan Kissan Ittehad (PKI).

Key points

• Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
• Add as a preferredSource on Google Follow on Google News Join WhatsApp.
• Khokhar remarked ineffective administration policies over the past three years had severely weakened domestic wheat production and caused an estimated Rs.
• According to the PKI, higher diesel rates, climbed tube well electricity tariffs and longer international shipping times have raised production and import costs.
• It remarked farmers need sufficient time to plan their cultivation ahead of the Rabi season.

PKI President Khalid Mahmood Khokhar issued the warning at a press conference and called on federal and provincial governments to take immediate steps to backing wheat production and protect food security.

Khokhar remarked ineffective administration policies over the past three years had severely weakened domestic wheat production and caused an estimated Rs. 2, 200 billion loss to farmers. He remarked the situation had been further aggravated by global disruptions, including the Gulf conflict that began on February 28, disruptions in the Strait of Hormuz and the Russia Ukraine war. Govt Approves Rs. 567 Million for Reko Diq Security.

According to the PKI, higher diesel rates, climbed tube well electricity tariffs and longer international shipping times have raised production and import costs. The organization cautioned that without corrective measures, Pakistan could face a major wheat supply gap and a substantial foreign exchange burden.

In practice, the PKI called on the administration to immediately restore the wheat backing cost to Rs. 4, 702 per 40 kilograms. The organization estimates that farmers at present face a net production cost of Rs. 3, 761 per 40 kilograms and remarked the proposed backing cost, including a standard 25 percent profit margin, would provide an incentive to bring fallow land back into cultivation and target a wheat harvest of 31 million tons.

For context, the organization pressed the prime minister and the minister for National Food Security to officially announce the wheat procurement policy and restore the backing cost by the end of August. It remarked farmers need sufficient time to plan their cultivation ahead of the Rabi season.

Notably, the PKI additionally called on any future fertilizer subsidies to be based on nutrients and extended to all phosphatic fertilizers rather than being limited to DAP. It cited the Economic Coordination Committee's March 2022 decision. It included all phosphatic fertilizer grades, and remarked almost 80 percent of farmers employ alternatives such as Nitrophos, TSP, SSP, MAP, NP, NPS and NPK fertilizers.

Meanwhile, the organization cautioned that restricting subsidies to DAP could encourage black market speculation and lead to unnecessary foreign exchange spending on DAP imports. It remarked local supplies of alternative phosphatic fertilizers are already sufficient to meet the requirements of the 2026 to 27 crop cycle. Stay Connected with ProPakistani.

Obtain the latest business news, market insights, and economic updates wherever you prefer. Follow on Google Discover.

In short, pakistan Could Face 3 Million Ton Wheat Shortfall Without Support Price is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.