In a major move to ease farmer concerns and defuse ongoing protests, Punjab Chief Minister Maryam Nawaz has approved a wheat support subsidy of Rs5,000 per acre. The relief will be provided under the Kissan Card programme and benefit around 600,000 farmers across the province. The decision comes at a time when the provincial government is under pressure from both farmers and flour millers over its wheat procurement policy.
During a high-level meeting in Lahore, the chief minister directed that farmers without Kissan Cards should also be eligible for the subsidy. Officials informed her that farmers have already utilised Rs36 billion through the Kissan Card to buy agricultural inputs, and Rs22 billion in loans have been repaid. The second phase of support for the new crop cycle is also underway, with 50% of applications already verified.
The meeting also explored proposals to include not just landowners but contractors under the wheat support scheme. Additionally, the government is reviewing a plan to solarise agricultural tubewells to reduce power costs and promote eco-friendly practices on farms. These steps aim to reduce input costs and improve farm profitability.
The relief scheme coincides with widespread backlash from the Pakistan Flour Mills Association (PFMA). The group has warned that a new mandate requiring mills to stock wheat equal to 25% of their grinding capacity is not feasible. As a result, many mills have stopped operating, and flour supply chains are under stress. Meanwhile, wheat prices have dipped to Rs2,200 per 40kg, prompting farmer protests.
The Punjab government now faces the challenge of balancing grower support with industry stability. While the new subsidy offers a lifeline to struggling farmers, questions remain about how the government will ensure fair implementation and keep both sides of the wheat supply chain functional in the weeks ahead.