ISLAMABAD: The Punjab government today announced a Rs15 billion relief package for wheat farmers in response to plummeting prices during the harvest season, which has sparked farmer protests across the province.
As part of the initiative, direct financial assistance will be provided to 550,000 wheat farmers through the Kisan Card under the newly launched Wheat Support Fund. Additionally, wheat farmers have been exempted from irrigation and fixed taxes for the current year.
To shield farmers from climate-related losses and market volatility, the government is offering free Electronic Warehouse Receipt (EWR) storage for four months. The EWR system allows farmers to receive electronic receipts for their stored wheat, which can be used within 24 hours to secure loans covering up to 70% of the wheat’s value.
Furthermore, the government will cover interest payments on loans—up to Rs100 billion—taken from the Bank of Punjab by flour mills and green license holders for wheat procurement. The cabinet’s approval is also being sought to mandate wheat purchases by these entities and require them to store at least 25% of their total capacity.
The province plans to approach the federal government to explore wheat and wheat product exports. Additionally, the Bank of Punjab will offer financing to private businesses for warehouse construction and renovation, with the provincial government covering Rs5 billion in interest payments to support improved storage facilities.
In a major policy shift, the ban on wheat and flour transport across provincial and district borders has been lifted.
Chief Minister Maryam Nawaz reaffirmed her commitment to protecting farmers, recalling that wheat prices had dropped significantly last year due to grain imports during the caretaker administration, which did not procure wheat locally.
