LAHORE: Pakistan Kissan Ittehad (PKI) has urged the government to establish an Agricultural Commodities Price Commission to ensure a transparent pricing mechanism that guarantees farmers at least a 25 percent return on their investment. In addition, PKI also called for the creation of an Agricultural Export Authority to stabilize domestic prices and promote sustainable marketing of surplus produce.
PKI President Khalid Mahmood Khokhar made these demands while speaking to journalists the other evening. He also called for the removal of the 18 percent GST on seed cotton, the abolition of GST on tractors and related implements, and the introduction of a uniform electricity tariff of Rs 10 per unit for irrigation tube-wells.
“Without urgent reforms, experts warn that Pakistan’s agricultural sector, which remains the backbone of its economy is on an accelerating downward spiral, with far-reaching consequences for food security, economic resilience, and social stability,” he remarked.
Reacting to the Punjab budget, he criticized the mere 10.75 percent increase in agriculture allocations, arguing that it reflects either a gross underestimation of the crisis facing the sector or a deliberate attempt to downplay its severity. “Despite these alarming signals, the Government of Punjab has allocated only Rs 129.8 billion for agriculture in the 2025–26 budget a modest 10.75 percent increase from last year’s Rs 117.2 billion. In the face of a multi-trillion-rupee crisis, this nominal increment of Rs 12 billion is widely seen as inadequate and dismissive of the sector’s plight,” said PKI President Khalid Mahmood Khokhar.
Adding to farmers’ concerns is the government’s proposal to tax agricultural income; a move many believe demonstrates a profound disconnect from the economic hardships currently faced by the farming community. Applying tax slabs designed for stable corporate businesses to climate-affected farmers struggling with water scarcity could prove disastrous. Such a policy risks deepening rural poverty, discouraging investment, and further destabilizing an already fragile sector, he warned.
The affordability crisis among farmers has reached critical levels. A steep decline in fertilizer usage, particularly urea and DAP along with a significant drop in tractor sales, indicates that farmers are unable to invest during the current Kharif season. The prospect of declining cotton yields is increasing, and the potential impact on the upcoming Rabi wheat crop is also cause for concern. If this downward trend continues, it could trigger a dangerous food security emergency.
Khokhar pointed out that Pakistan’s agricultural sector is in deep crisis, with growth plunging by 5.84 percent over the past year, and major crop production shrinking by more than 13 percent. Agricultural exports have also sharply declined in 2024–25, laying bare the sector’s deep structural weaknesses. Maize exports fell by a staggering 86 percent to just USD 58.9 million, while rice exports dropped by 15 percent to USD 3.3 billion.
Copyright Business Recorder, 2025
