Surplus Wheat Production is Causing Billions in Losses

Surplus wheat production has become a perpetual problem, resulting in losses to the tune of billions of rupees. Therefore, the government should frame a new wheat export policy and try to reduce the area under cultivation for wheat, a business leader said on Monday.

According to details, the surplus wheat stocks with provinces and the federal government have reached a record high of nine million tonnes of which half is lying in the open on the mercy of the weather, said Atif Ikram Sheikh former President ICCI.

He said that all efforts to export wheat have remained counter-productive despite handsome subsidy as the international prices are almost half of the local prices.

Moreover, the rebate claims of the exporters are still pending, which will make it difficult for the business community to export more.

On the other hand, Pakistan government exported tomatoes and failed to import onions despite below par local production. Both these mistakes have also caused billions to the public and the government.


  • This is the result of price fixing policies of the Pakistani government. Policies first introduced during the PPP reign. The government guarantees to buy wheat from farmers at a minimum price and because of that farmers are overproducing the commodity. As the article points out the price of wheat in Pakistan is double the price in the international market so consumers are paying through the nose for this. Consumers are also paying extra for other agriculture products that are not being produced because the land is being used to produce wheat instead. Products like vegetables. The rising price of vegetables is fueling demands for further price fixing by the government which will only worsen the situation.

    The government buys wheat at the support price via the public sector corporation PASSCO. PASSCO is now sitting on these huge stocks of wheat that it can’t sell. Tax payers will have to bear the burden of PASSCO’s losses too.

    We must learn from our mistakes and stop interfering in the free functioning of the market. No more price fixing!

  • yeh this is a good idea to donate this to Rohangiyan’s but they will never do this and till ready to bear the heavy loss
    another thing is the farmers are heading to the watermelon,onions or tomato are also fail to take handsome income and most of the time its going in loss to farmer.
    Goverment should help the farmers of small level which are facing loss by every cultivation and afraid to invest in new implant.

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