April 19, 2024

Punjab, Pakistan, hit by record low wheat prices

Wheat prices in Pakistan's Punjab province have plunged to record lows, with farmers compelled to sell their harvest well below the government's minimum support price.

Against the official minimum support price of Rs3,900 (US$14.02) per 40kg, farmers are being forced to sell their produce for as low as Rs3,200 (US$11.51) per 40kg.

The maximum price being offered to growers by private buyers has been around Rs3,600 (US$12.94) per 40kg. A sharp decline in the price of new wheat has been reflected in the official wholesale price of wheat being compiled by the provincial government.

According to the official price list of agriculture commodities for 12 major markets, wheat prices in South Punjab have nosedived to less than Rs3,900 in the wholesale market. The average wheat rate slipped to Rs3,850 (US$13.84) per 40kg in Dera Ghazi Khan and Rs3,680 (US$13.23) per 40kg in Bahawalpur. This means wheat is being purchased from farmers at less than Rs3,200 in the open market.

Meanwhile, farmers associations have announced a protest against what they called inaction by the provincial government as the Food Department has not launched a procurement drive.

- The News International