By Business Desk.

The Pakistan Kissan Ittehad (PKI) has warned that farmers have incurred Rs. 2,200 billion in wheat-related losses from May 2024 to May 2025. This loss amounts to 23.15 percent of the crop sector’s Rs. 9,500 billion contribution to the national GDP in FY24.

The collapse has severely reduced farmers’ purchasing power and disrupted other major crops.

Cotton production has dropped to 5.55 million bales, 50 percent below target and 34 percent lower year-on-year, raising the cotton import bill to $1.9 billion.

Wheat output has declined 8.91 percent to 28.98 million tons, causing a 2.82 million ton shortfall and an estimated Rs. 250 billion loss at international market rates. Maize production has decreased 15.4 percent to 8.24 million tons, and sugarcane output has slipped to 84.24 million tons from 87.64 million tons.

Overall, major crop production is down 13.49 percent in FY25. Agricultural sector growth has plummeted from 6.25 percent to 0.56 percent since July 2024.

Food trade data shows worsening trends. Raw food exports fell to $6.16 billion during July–April FY25 from $6.23 billion last year. Meanwhile, the food import bill rose to nearly $7 billion from $6.82 billion.

PKI has criticised the tax regime, highlighting zero GST on imported cotton while domestic seed cotton faces 18 percent GST. It also points to 14 percent GST on tractors and 18 percent on tractor-mounted implements.

The PKI demands immediate abolition of all such taxes, declaration of support prices for all crops, and implementation of a transparent pricing mechanism guaranteeing at least a 25 percent return on investment. It also calls for a flat Rs. 10/unit electricity tariff for agriculture to prevent further collapse.

Published Date: June 8, 2025