- Over half a million wheat growers in Punjab to get direct cash support and tax exemptions.
- New storage and loan facilities introduced, but farmer groups say measures favor large millers and traders.
- Widespread protests continue as smallholders demand higher wheat prices and broader government intervention.
Punjab’s Wheat Relief Plan
The Punjab government has introduced a sweeping Rs15 billion relief initiative aimed at supporting wheat farmers hit by plummeting market prices and mounting financial strain as the harvest season unfolds. This announcement comes at a time when farmer protests have erupted across the province, with many growers voicing frustration over what they see as inadequate government action.
The relief package, branded as the Wheat Support Fund, is set to provide direct financial assistance to around 550,000 wheat producers via the Kisan Card system. This mechanism is designed to streamline the delivery of subsidies and make it easier for farmers to access funds for essential agricultural inputs like seeds and fertilizers. Alongside this, the government has suspended irrigation and fixed tax payments for wheat growers for the current year, aiming to ease the financial load and boost productivity on farmlands.
In a bid to shield farmers from market volatility and unpredictable weather, the government has also introduced a four-month free storage program under the Electronic Warehouse Receipt (EWR) system. By storing their wheat in approved facilities, farmers receive digital receipts that can be used as collateral to secure loans worth up to 70% of their crop’s value within just 24 hours. This is intended to give growers more flexibility to wait for favorable market conditions before selling their harvest.
Further measures include government coverage of interest payments on up to Rs100 billion in loans taken by flour mills and green license holders from the Bank of Punjab for wheat procurement. Additionally, the cabinet is expected to mandate that flour mills and green license holders purchase and store at least a quarter of their total storage capacity in wheat, aiming to stabilize demand and prices.
The package also features a Rs5 billion subsidy for the construction and upgrading of storage warehouses, and plans are underway to seek federal approval for wheat exports, potentially opening new markets for Punjab’s growers.
Farmer Backlash and Demands for Reform
Despite these interventions, farmer organizations have widely dismissed the relief measures. Leaders from the Pakistan Kissan Rabita Committee and Farmers Itehad argue that the package disproportionately benefits large landowners, millers, and traders, leaving small-scale farmers without guaranteed fair prices or meaningful support. They have called for a fixed wheat procurement price of Rs4,000 per maund and insist that the current EWR system and related policies fail to address the needs of those with limited storage access or bargaining power.
As the debate intensifies, Punjab’s wheat farmers remain at the center of a policy tug-of-war, demanding not just immediate relief but long-term reforms to ensure fair compensation and a sustainable future for the province’s agricultural backbone.
| Category | Details |
|---|---|
| Financial Package | Rs15 billion relief fund for wheat farmers |
| Direct Beneficiaries | ~550,000 wheat growers via Kisan Card |
| Tax Relief | Irrigation and fixed taxes waived for current year |
| Storage Initiative | 4-month free EWR storage with loans up to 70% of crop value |
| Loan Support | Govt to cover markup on Rs100B loans for mills/green license holders |
| Procurement Mandate | Proposed 25% minimum wheat storage rule for mills |
| Warehouse Subsidy | Rs5B allocated for storage infrastructure upgrades |
| Export Plans | Punjab seeks federal approval for wheat exports |
| Farmer Demands | Rs4,000/maund procurement price; broader smallholder support |
| Criticisms | Package seen as favoring mills, traders, and large landowners |
