04/06/2025
Massive PKR 2.2 Trillion Loss in Wheat Triggers Agricultural Crisis in Pakistan
Islamabad :News Desk ,
Pakistan's agriculture sector is in deep crisis, with farmers suffering staggering losses of over PKR 2,200 billion in wheat alone between May 2024 and May 2025, according to the latest figures shared by stakeholders. This compound loss accounts for 23.15% of the total crop sector's GDP contribution in FY 2023-24, which stood at PKR 9,500 billion.
The economic blow has severely weakened farmers' purchasing power and disrupted the production cycles of other major crops across the country.
Major Crop Losses
A breakdown of the losses reveals the following grim picture:
Crop Production 2024 (m tons) Price 2023 (Rs/40kg) Price 2024 (Rs/40kg) Per 40kg Loss (Rs) Total Loss (PKR bn)
Wheat 2024 31.4 3,900 2,650 1,250 981.25
Raw Cotton 2.8 7,000 6,000 1,000 70
Maize (Spring) 6.2 2,850 2,050 800 124
Total: 1175.25
The wheat crisis worsened in 2025, with production dropping by 8.91% from 31.81 million tons to 28.98 million tons, resulting in a further PKR 1,219.75 billion in losses.
Cotton: A Sector in Collapse
Cotton production has halved from targets, falling to 5.55 million bales — a 34% decline from last year. This shortfall has forced Pakistan to import cotton worth $1.9 billion, up from just $448 million the previous year. Meanwhile, local cotton growers face a crippling 18% GST on seed cotton, while imported cotton bales enjoy zero GST.
Shrinking Output Across the Board
Maize production fell by 15.4% to 8.24 million tons.
Sugarcane output declined from 87.64 to 84.24 million tons.
Overall production of important crops decreased by 13.49% in FY25.
Food Trade Deficit Widening
Pakistan's food export revenue slightly dipped to $6.16 billion (July–April), compared to $6.23 billion last year. Meanwhile, food imports surged to nearly $7 billion, worsening the trade imbalance and exposing food security vulnerabilities.
Recommendations from Stakeholders
In light of the deepening crisis, the following urgent measures have been recommended:
No new taxes: The agriculture sector should be exempted from any further GST/FED burdens.
Announce support prices for all crops to end exploitation.
Ensure at least 25% ROI for farmers via a fair and transparent commodity pricing mechanism.
Abolish 18% GST on locally produced seed cotton.
Reduce electricity tariffs to Rs 10/unit with a one-unit-one-rate system.
Withdraw 14% GST on tractors and 18% on tractor-mounted implements.
A Sector at a Tipping Point
The agriculture sector’s growth rate has plummeted from 6.25% to just 0.56% since July 2024 — a dramatic indicator of distress. With the cumulative wheat losses alone exceeding PKR 2.2 trillion, farmers and stakeholders are warning of irreversible damage to the nation’s food security if immediate policy interventions are not made.
