ISLAMABAD / KARACHI: After a year of aligning with the federal government’s decision to abandon wheat procurement at a fixed support price, both federal and provincial authorities now appear to be rethinking the policy. Sindh has formally proposed reinstating the minimum support price (MSP) mechanism for the upcoming 2025-26 wheat season, warning that unchecked market forces have already hurt farmers and triggered instability in the food sector.
In a letter dated Oct 2 to the Ministry of National Food Security and Research (MNFSR), Sindh Food Secretary Mohammad Bachal Rahupoto recommended setting a minimum support price “not less than” last season’s Rs4,000 per 40kg. The proposal, endorsed by Chief Minister Murad Ali Shah during a recent meeting with Federal Food Minister Rana Tanveer Hussain, argues that the MSP is vital for restoring farmers’ morale and ensuring production consistency.
According to Sindh’s assessment, wheat stocks remain sufficient for the next five to six months, eliminating the need for imports in the current season. The province has urged the federal government to make any future import decisions only after a careful review of domestic supply and demand. “Market interventions are essential to protect food security and shield consumers from abrupt price hikes,” Mr Rahupoto noted, adding that small-holding farmers require targeted support to sustain production.
Federal authorities, meanwhile, are consulting provinces under the prime minister’s directive to craft a new policy framework. Sources said Islamabad is preparing to approach the International Monetary Fund (IMF) to secure flexibility for a gradual transition out of the procurement regime — or a hybrid model involving private-sector participation — after the abrupt exit last year left farmers “at the mercy of traders.”
The impact of that withdrawal has been severe. Wheat growers in FY25 reportedly sold grain at Rs2,000–2,200 per 40kg, well below their production cost, while consumers are now paying Rs95 per kg for flour. Farmer leader Khalid Mehmood Khokhar of the Pakistan Kissan Ittehad questioned the logic of “deregulating the market while restricting wheat movement,” calling the policy contradictory and damaging.
Read More: Regulatory Silence: How Nepra’s Lapses Burden Consumers
Data supports his claim: when procurement continued in 2023 and farmers received around Rs3,900 per 40kg, agriculture growth reached 6.25pc. But after procurement was halted in 2024-25, the sector recorded negative growth of 0.56pc, even including livestock output.
Sindh Abadgar Board President Mahmood Nawaz Shah criticised the dual policy of banning exports while allowing wheat imports during harvest season, which he said “strangled the market and caused hundreds of billions in losses” to growers across two consecutive years.
Sindh’s wheat production in FY25 was 3.5 million tonnes from 3.1 million acres, reflecting a 9.5pc fall in area and 23pc decline in output compared to FY24. Procurement targets, typically around 1.3-1.4m tonnes, were again missed.
Internally, Sindh’s Food Department faces structural and credibility challenges. Its procurement capacity remains capped at 750,000 tonnes, unchanged for decades. The department, now owing Rs176bn (including markup) to the State Bank of Pakistan, has struggled with allegations of corruption, particularly in the Sukkur division, where officials have faced NAB inquiries over misappropriation of funds.
Despite cabinet reshuffles, no policy overhaul has been announced. Officials privately admit that the department’s future remains uncertain: whether it will be merged, restructured, or retained remains an open question.
As the debate over wheat support prices re-enters the federal agenda, policymakers face a familiar dilemma — whether to continue deregulation under IMF pressure or restore limited state intervention to stabilise farm incomes and ensure food security.