Agri-Budget Falls Short as Farming Sector Collapses

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Agricultural experts and farmer representatives have called for urgent government intervention to rescue Pakistan’s collapsing farming sector. Key demands include the creation of an Agriculture Commodities Price Commission (ACPC) to ensure a minimum 25% return on investment for farmers, an Agriculture Export Authority (AEA) to stabilize prices and boost exports, and the removal of GST on seed cotton, tractors, and farm equipment. Additionally, they seek a uniform electricity tariff of Rs10 per unit for tube-wells to ease irrigation costs.

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Sector in Freefall

Recent data paints a grim picture:

  • Agriculture shrank by 5.84% in just one year.
  • Wheat production fell by 8.91%, with farmers losing Rs2,200 billion in a single year.
  • Cotton output dropped 34%, forcing $4.45 billion in imports—a 178% surge that strains foreign reserves.
  • Maize (-15.4%) and sugarcane (-3.9%) also saw steep declines.

Export Crisis Deepens

Agricultural exports plummeted in 2024-25:

  • Maize exports crashed by 86% to just $58.9 million.
  • Rice exports fell 15% to $3.3 billion.
  • Onions (-48%), mangoes (-16%), and potatoes (-4%) also suffered major drops.

Budget Sparks Outrage

Despite the crisis, Punjab’s Rs129.8 billion agriculture budget—only Rs12 billion more than last year—has drawn fierce criticism. Farmers say the allocation is a “Band-Aid for bullet wounds” given the trillions in losses.

Khalid Khokhar, President of Pakistan Kissan Ittehad, called it an “insult to farmers”, warning of food security risks and rural collapse.

Tax Plan Backfires

The Punjab government’s proposal to tax agricultural income has further angered struggling farmers. Muhammad Aslam, a Bahawalpur farmer, said: “We’re already drowning in debt—how can they tax us now?”

Dr. Fahd Ali, an agricultural economist, warned the move is “economically illiterate and socially risky”, potentially accelerating rural poverty and unrest.

Farmers on the Brink

With falling fertilizer use and tractor sales, experts fear lower crop yields, especially for cotton and wheat. Khokhar warned of mass rural migration and protests if immediate relief isn’t provided.

Call for Action

Experts urge the government to waive taxes on farm inputs and establish price and export regulators to prevent a full-blown agricultural disaster. Without urgent action, Pakistan’s food security and economic stability hang in the balance.

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