LAHORE (Dunya News) – The Punjab government has unveiled a Rs15 billion assistance package aimed at supporting wheat farmers and preventing financial losses amid falling wheat prices.
The Wheat Support Fund will directly benefit 550,000 farmers, who will receive financial aid through the Kissan Card.
This announcement was made on Wednesday, as protests erupted in various parts of the province over the government's failure to set a support price, coinciding with the start of the wheat harvesting season.
As part of the package, farmers will be exempt from paying irrigation and fixed taxes for the current year. They will also receive free access to the Electronic Warehouse Receipt (EWR) facility for up to four months to safeguard their wheat against climate change.
Farmers who store wheat under this system will receive an electronic receipt, which they can present at the bank within 24 hours to secure a loan of up to 70% of the wheat's market price.
Additionally, the package will cover the mark-up on loans, up to Rs100 billion, provided by the Bank of Punjab to flour mills and green license holders for wheat procurement.
The government will seek cabinet approval for the immediate and mandatory wheat purchases by flour mills and green license holders. Furthermore, it has been made compulsory for wheat storage to occupy 25% of the total available storage capacity.
Punjab has also decided to reach out to the federal government to explore the possibility of exporting wheat and wheat products. The Bank of Punjab will offer financial support to the private sector for the construction and renovation of wheat storage facilities.
To aid wheat farmers further, the Punjab government will allocate Rs5 billion for storage-related mark-up payments. Additionally, the ban on the transportation of wheat and flour across provincial and district borders has been lifted.
Chief Minister Maryam Nawaz has pledged to protect farmers from financial harm, assuring that she will not allow them to suffer. Last year, the Punjab government refrained from purchasing wheat due to imported grain during the interim government under Mohsin Naqvi, which led to a sharp decline in wheat prices.