Pakistan Wheat Production Decline in Agriculture Sector leaves farmers in financial ruin. With wheat, farmers have lost an estimated PKR 2,200 billion since May 2024. The loss accounted for a total of 23.15% of the crop sector’s contribution to fiscal year 2023-24’s GDP, which was PKR 9,500 billion.
Pakistan Kissan Ittehad stated that the wheat price for farmers has reduced from the government support price of PKR 3,900 per 40 kg to as low as PKR 2,200 per 40 kg in 2025. Additionally, wheat production has dropped by 8.91%, from 31.81 million tons last year to 28.98 million tons in 2025.
Similarly, production of other major crops in Pakistan has decreased to 13.4% in fiscal year 2024-25. The production of cotton was reduced to 5.55 million bales, 34% lower than the previous year and 50% short of national targets. Farmers are losing PKR 1,000 per 40 kg because of the price drop to PKR 6,000 from PKR 7,000. Additionally, the import bill for cotton is expected to increase to $1.9 billion from $448 million in 2024.
The production of spring maize has dropped by 15.4% from 9.74 million tons. Prices decreased from PKR 2,850 per 40 kg to PKR 2,050. The sugarcane production also resulted in a decline from 87.64 million tons to 84.24 million tons.
Moreover, Pakistan’s agriculture department is facing a significant decline in growth, falling from 6.25% last year to 0.56% since July 2024. This has been aligned with a worsening food trade balance, with exports reducing from $6.23 billion to $6.16 billion to nearly $7 billion between July 2024 and April 2025. The current tax structure, which exempts imported cotton bales from GST while taxing locally produced seed cotton at 18%, has generated disadvantages for domestic growers, spreading frustration within the farming community.
Khalid Mahmood Khokhar, the president of Pakistan Kissan Ittehad, criticized the government policies, saying that they are ruining the agriculture and risking national food security. He also stated that farmers are experiencing economic ruin due to high costs, lack of subsides and unjust taxation. He also mentioned that cotton imported from Brazil and the United States is tax-free, while local farmers are forced to pay 18% tax, calling it an ”economic injustice.”
According to Khokhar, cotton growers in pakistan have experienced losses of over PKR 2,000 billion since May 2025 and are struggling to afford input for the next planting season. He criticized the lack of support from regional parity, mentioning that Indian farmers claim 10 Hours of free electricity daily.
Moreover, he censured the claim of the government of making bread cheaper, saying that while wheat prices have dropped, there has been no actual relief for farmers and the public, emphasizing that farmers have not received any advantage from any meaningful state intervention. He warned the government any more taxation, particularly under IMF directives, would cause severe damage to the sector.
Lastly, Khokhar appealed to Chief of army staff to solve the issues, highlighting the importance of agriculture and prevention of national food shortage to save Pakistan’s agricultural economy.
