Punjab budget slammed: Farmers’ bodies demand better crop prices instead of loans

LAHORE: Various farmers’ organisations have expressed disappointment over the Punjab budget 2025-26, urging the authorities to priorities ensuring fair prices for crops rather than focusing on loan disbursements or subsidies on machinery.

Reacting to the proposed allocations, Abad ur Rehman, Director of the Farmers Associate of Pakistan (FAP) and a progressive farmer, said that loans would only benefit farmers if they are able to sell their produce at profitable rates. “Without fair crop prices, these loans will turn into a financial burden for farmers,” he remarked.

Echoing similar concerns, Khalid Hussain Bath, Central President of Kissan Ittehad Pakistan (KIP), also voiced dissatisfaction with the provincial budget. He stressed the need for the government to facilitate farmers’ access to international markets so they can earn a better return for their hard work.

“We have repeatedly appealed to the government: we don’t need loans — what we need are good rates for our crops,” Bath said.

Farmers’ groups argue that while subsidies on tractors, solar panels, and agricultural machinery can be helpful, they do little to resolve the core issue of low profitability from farming, which remains a major concern for the agriculture sector in Punjab.

Abad ur Rehman alleged that in the past two years alone, farmers have suffered losses of over 2,000 billion rupees just on wheat. Similarly, maize crops also faced losses due to climate change and price fluctuations. Despite this, the government did not address marketing issues or farmers’ profitability — instead, it hinted at imposing an agricultural income tax.

More emphasis was placed on subsidies for tractors, solar panels, and agricultural machinery, which seem more politically motivated than practically beneficial, he noted.

He was also dissatisfied with the allocation for the agricultural sector and said one can gauge the importance given to agriculture by the fact that only 80 billion rupees were allocated for agriculture, while 150 billion rupees were allocated for electric buses.

“As for the much-hyped ‘Electronic Warehouse Receipt’ initiative, no concrete policy has been presented on that either,” he added.

Khalid Hussain Bath, President of Kissan Ittehad Pakistan (KIP), echoed these concerns. He said that farmers had hoped for real relief this year after two consecutive years of severe losses across wheat, maize, rice, and vegetable crops. “Most farmers are still unable to recover from the financial blows they took in the wheat season,” he added.

“We don’t need loans — what we need are good returns on our crops,” Bath concluded.

Farmers’ leaders stressed that unless the government focuses on improving market access, stabilising prices, and ensuring fair profitability, the agriculture sector will continue to struggle — regardless of subsidies or loan schemes.

Copyright Business Recorder, 2025