‘Left in the Lurch’: Pakistan’s Farmers Crushed by Wheat Market Crisis and Broken Food Supply Chain

ISLAMABAD: In the golden fields of Punjab and Sindh, the wheat harvest of 2025 should have brought prosperity to farmers who toiled through rising costs and climate uncertainty.

Instead, what unfolded is a deepening crisis in Pakistan’s food economy — a tale of unmet promises, policy blunders, and a supply chain that enriches middlemen while impoverishing the very hands that feed the nation.

From fields to exploitation

Muhammad Yousaf, a seasoned wheat farmer from Khanewal, Punjab, sums up the frustration felt by thousands across Pakistan:

“We work tirelessly in our fields, but when the time comes to sell our crops, we are left at the mercy of commission agents who dictate unfair prices. It’s almost impossible to make ends meet.”

This year, wheat farmers like Yousaf expected some relief after last season’s backbreaking work.

But the 2024–25 harvest, already battered by below-average rainfall — with April alone seeing a 60% precipitation deficit — fell to 28.42 million metric tons, well below the government’s target of 33.58 million and last year’s record 31.4 million.

In Punjab, which supplies more than 75% of the nation’s wheat, production missed targets by 12%.

But even more devastating was the lack of a support structure. The government’s withdrawal of the minimum support price and public procurement scheme, once a lifeline, left farmers to the mercy of the open market — now dominated by powerful arthis (middlemen).

Policy vacuum, capitalist windfall

The government’s justification for deregulation was “market efficiency.” In practice, this policy shift created a power vacuum swiftly occupied by profiteers.

Without state-backed procurement or price guarantees, wheat prices plummeted post-harvest.

In markets across Punjab and Sindh, wheat fetched as little as PKR 2,200–2,390 per 40 kg, while the production cost stood at PKR 3,200 — a loss of over PKR 700 per 40 kg for the average grower.

Meanwhile, urban consumers continue to pay elevated prices — a paradox of food inflation amid falling farmgate prices. Experts say the gap is being pocketed by intermediaries and hoarders.

Dr. Ayesha Raza, economist at the Pakistan Institute of Development Economics (PIDE), explains:

“The role of intermediaries inflates food prices disproportionately. Farmers receive only a fraction of the final price, while consumers bear the burden of high costs. The middle layer is parasitic.”

This year’s food inflation surged beyond 20%, leaving essential staples like wheat, rice, and pulses out of reach for millions. Sana Malik, a schoolteacher from Islamabad, shares her distress:

“Every month, grocery prices go up. It’s becoming difficult to afford basic food items, and there seems to be no control over it.”

Storage woes and wasted potential

Pakistan’s food supply chain isn’t just exploitative — it’s deeply inefficient. The lack of storage and transport infrastructure further punishes farmers, particularly those growing perishable crops.

PIDE estimates that 30-40% of agricultural produce is wasted due to inadequate cold chains and poor logistics.

Ahmed Khan, a fruit vendor in Lahore, illustrates this inefficiency:

“By the time the produce reaches us, almost a quarter of it is already spoiled. We have no choice but to raise prices to cover our losses.”

Pakistan has only 6,000 cold storage units, mostly in Punjab and Sindh — a fraction of the 15,000 needed to handle the nation’s perishable output. Only 3–5% of perishables are kept in controlled environments.

The bulk of the modern storage capacity belongs to large corporations like Nestlé and National Foods, serving industrial supply chains, not smallholder farmers.

Brewing crisis in countryside

For farmers, the consequences are devastating. Saddled with high input costs (fertilizer, diesel), denied fair prices, and pushed into dependency on informal loans from arthis, many are contemplating giving up wheat farming altogether.

The Pakistan Kissan Ittehad, a national farmer alliance, recently rejected the Punjab government’s relief package and issued a stark warning:

“If the government does not ensure fair prices and restore procurement support, there may be no wheat cultivation next season.”

Such threats, once dismissed as rhetoric, now carry real weight as more farmers shift to cash crops like vegetables and mustard, which offer better margins and quicker returns.

This change, however, creates longer-term food security risks for a nation of over 240 million.

Can reform reverse the rot?

Government officials acknowledge the crisis but insist reforms are underway.

“We are working on policies to establish direct market access for farmers, reducing reliance on middlemen and ensuring fair pricing,” said a Ministry of National Food Security spokesperson in a recent briefing.

Experts argue that the solution lies in comprehensive reforms:

• Reinstating a minimum support price for staple crops.
• Expanding government-run procurement and storage facilities.
• Promoting cooperative farming models to increase farmers’ bargaining power.
• Building digital marketplaces to link farmers directly with buyers.
• Investing in modern cold chains and transport infrastructure.

But without urgent and transparent execution, these ideas risk remaining policy papers gathering dust — while growers like Muhammad Yousaf fall deeper into poverty.

Fixing broken chain

Pakistan’s food supply chain — once envisioned as a bridge between its rich agricultural base and its growing urban centres — has become a gauntlet of inefficiencies, exploitation, and missed opportunities.

In this chain, it is the farmer and the consumer who suffer the most — crushed from both ends, while profiteers walk away with the gains.

Unless decisive and farmer-centric reforms are enacted, the country risks not only its food security but also the very survival of its agricultural economy.