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Pakistan's wheat crisis deepens as policy failures trigger fear of shortages

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Islamabad | May 24, 2026 5:24:57 PM IST
Pakistan's wheat sector has plunged into another major crisis, exposing deep flaws in agricultural planning, procurement management and food security policies, leaving farmers, flour millers, and consumers trapped in uncertainty, as reported by Dawn.

According to Dawn, Punjab Chief Minister Maryam Nawaz has ordered strict action against traders who fail to declare wheat stocks within two weeks. The move reflects growing concern over falling wheat production and fears of a flour price surge in the coming months. Punjab's Agriculture Department estimates average wheat production at around 33 maunds per acre, while analysts believe the national crop may fall more than 20 per cent short of annual demand.

The shortage comes at a dangerous time as global grain markets remain unstable due to the Russia-Ukraine war and tensions in the Middle East. Weak government reserves and contradictory procurement policies have further destabilised the market. Economists argue that the crisis is not simply the result of hoarding but of failed state intervention in a market already reacting to expected shortages. Farmers say rising production costs have made wheat cultivation increasingly unviable.

Pakistan Kissan Ittehad President Khalid Khokhar criticised the government for intervening only after prices rose, while growers were earlier forced to sell wheat at extremely low rates. Fertiliser, diesel, electricity and labour costs have all increased sharply, reducing cultivation incentives.

The flour milling industry also blamed inconsistent regulations and delayed financing approvals for worsening the crisis. Investors and traders reportedly shifted wheat stocks into private storage amid fears of future shortages and rising prices, as highlighted by Dawn.

Experts stated that aggressive procurement targets, movement restrictions and stock raids reduced market confidence and tightened supply further. Analysts now argue that transparent private-sector participation, flexible pricing policies and targeted subsidies for vulnerable populations may offer a more sustainable solution than administrative controls, as reported by Dawn. (ANI)

 
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