LAHORE: In a ruling addressing the economic hardships faced by wheat growers, the Lahore High Court has directed the provincial government to ensure the enforcement of the Punjab Price Control of Essential Commodities Act, 2024, to safeguard farmers’ interests and prevent exploitation in wheat pricing.

Justice Sultan Tanvir Ahmad, while disposing of a petition filed by Kissan Board Pakistan President Zafar Hussain Khan, observed that the state is constitutionally obligated to protect the livelihood of farmers and maintain fair pricing mechanisms for essential commodities, particularly wheat, which forms the staple diet of the country.

The petitioner, represented by Advocate Zubair Afzal Rana, argued that the indicative price of wheat for the 2024-25 crop was announced at Rs4,108 per 40kg by the agriculture department.

However, no official price fixation was implemented, leaving farmers vulnerable to exploitation and forced to sell their produce at around Rs 2,000 per 40kg — significantly below their production costs.

It was contended that this inaction, if continued, would discourage farmers from cultivating wheat in the future, threatening national food security.

The federal and provincial law officers acknowledged that after the 18th constitutional amendment, price regulation of wheat falls under the domain of provincial governments.

They defended the discontinuation of the minimum support price mechanism, claiming it aligned with international best practices to allow market forces to ensure fair returns to farmers.

Assistant Advocate General of Punjab Salman Asif Warraich referenced historical price control measures, buffer stock policies, and financial support programmes initiated by the chief minister.

However, he admitted that these interventions might be insufficient under the current circumstances.

Justice Ahmad, while acknowledging the policy-making prerogatives of the executive, underscored that such policies must not contravene constitutional mandates.

The judge noted that the wheat pricing crisis has severely impacted small-scale farmers, many of whom rely solely on wheat cultivation for their livelihood.

The judge observed that the sudden policy shift from support pricing without addressing the rising cost of agricultural inputs exacerbated farmers’ financial burdens.

The judge said the increase of the prices of inputs in recent year(s) is obvious and if kept in view the average cost of production for this year has to be certainly higher. This leads to an irresistible conclusion regarding setback to the farmers, he added.

The judge noted that a report filed by additional secretary (commodities) states that the policy/package was issued to ensure farmers profitability.

“Perhaps that can be the intention of the policy makers and I have no reason to doubt this intention or the aim. However, no one from the respondent-side could demonstrate with even the lowest degree of certainty if the respondents remained able to achieve this endeavor, effectively,” the judge ruled.

Justice Ahmad observed that apparently the concerned were not well advised as to the true spirit of various provisions of the Constitution, which obligates the state to eliminate exploitation, secure citizens’ well-being, and ensure equitable distribution of wealth.

The judge said the position remained quite unsustainable, specifically for the farmers cultivating on low scale or with small land-holding and low-income farmers.

Referring to the Punjab Price Control of Essential Commodities Act, 2024, the judge pointed out that the law explicitly empowers the Price Control Council to regulate prices and combat artificial inflation and profiteering.

The judge directed the provincial authorities to implement the Act effectively, ensuring that wheat prices are regulated in line with the production costs and farmers’ rights are protected.

The judge concluded the judgement with a directive for the respondents — including the Punjab agriculture department and the concerned regulatory bodies — to take necessary measures to uphold the law and constitutional principles.

Published in Dawn, July 26th, 2025