Wheat harvesting season has started and government of Punjab is purchasing the commodity to build a stock of 4.5 Million tonnes, on which Rs158 billion shall be spent. Minimum support price of Rs.1400 per 40 kilogram is being paid to farmers, leaving a small profit margin of Rs.40, which are merely peanuts as compared with the input cost that the farmers have applied, while raising the crops. Moreover, the profit amount is designated as bad profit according to NRR formula. However, it is appreciable that this time the feudalistic restriction of ‘gardawari’ has been done away with and wheat purchase is done on first come first serves basis. Pakistan Agriculture Service Corporation is also buying wheat for the federal stock.
Farmers of subsistence farming face great challenges like shifting of cropping pattern, high input cost, non- availability of water at a proper time and above all manipulative practices of cartel mafia at the time of selling out their products. Therefore, the farmers’ community is shifting their focus to raising such crops that require low input cost. The relief packages, which have been announced so far, had not benefited small farmers in the provinces of Punjab and Sindh.
The agriculture sector is in deep crisis over the past two decades and farmers are not getting the price oftheir produce commensurate with the net rate of return, which must not be less than the ratio of 2. Reasonable minimum support price along with subsidy on inputs will improve this ratio. Cotton growers have expressed disappointment over the delay in the announcement of minimum support price for cotton. An area of 15-20 percent has been brought under cultivation till date against the desired target of 60 percent. Cotton is the basic raw material for the textile industry and exports as well. But its growers are getting the worst deal over the past several years, making the country dependent on its import to meet the domestic demand. A comprehensive long term agriculture policy is needed to address the burning problems of farmers.
