Pakistan Farmers Demand Higher Budgets to Boost Agricultural Sector

The Kissan Board Pakistan is calling for agriculture to receive at least 10% of federal and provincial budgets to reduce input costs and tackle ongoing deficits. The farmers' group has set support price demands of Rs5,000 per 40kg for wheat and Rs700 for sugarcane, citing declining profitability. They have also criticized urea shortages, high electricity bills, weak returns in the fruit sector, and the closure of the Pak-Afghan border, threatening protests if their demands are ignored.

While the sector contributes 22% of GDP and supports nearly 60% of the population, it currently receives only 2-3% of budget allocations. However, simply increasing funding may not be the solution. Decades of price subsidies and input support have distorted markets, encouraged inefficiency, and favored well-connected producers over small farmers.

Instead of reliance on subsidies, public investment should focus on addressing structural weaknesses that hinder farm productivity. Key areas include water management, irrigation efficiency, farm-to-market roads, storage, research, extension services, and better seed technology. Mechanization should be a central priority, with shared machinery services and affordable financing helping to spread its benefits without overwhelming farmers with capital costs.

The aim should be to lower production costs while raising yields and quality through modernization, rather than perpetual protection from market forces. Farmers need predictable trade policies, stable input markets, reliable power and water supply, and freedom from arbitrary official intervention in crop markets. Policies should encourage farmers to respond to prices and market demand rather than government directives.

Pakistan must also look beyond primary production. Strengthening the downstream processing industry can reduce post-harvest losses, add value to farm output, and create export opportunities. Improved cold storage, grading, packaging, processing, and logistics are essential and can help stabilize markets during production shortfalls by preserving stocks. The focus should be on making farming competitive rather than dependent on state support.