Pakistan Ag Coalition Proposes Warehouse Receipt Financing for Wheat Farmers

The Pakistan Agricultural Coalition (PAC) has proposed a new wheat support model for farmers that would allow them to keep their wheat in possession while borrowing against it for up to six months after harvest.

PAC CEO Kazim Saeed told ProPakistani that the proposal would extend warehouse receipt financing directly to farmers, giving the government first right to purchase the wheat after six months regardless of market price.

Saeed pointed out that the approach could address problems seen under Punjab's wheat aggregator model last year, where weather-related losses changed farmers' expectations and some were even told they couldn't retain wheat without permits.