LAHORE: Pakistan Kisan Ittehad (PKI) President Khalid Mahmood Khokhar on Tuesday dismissed initiatives, including the “Kisan Card” scheme, as superficial solutions, asserting that the fundamental issue facing farmers is the lack of fair prices for their produce. He warned of severe protests, including stopping cultivation of crops, if immediate measures are not taken to address the crisis.

Addressing a press conference here on Tuesday, Khokhar highlighted the disparity in tax policies, noting that countries like the US and Brazil do not impose a General Sales Tax (GST) on cotton, while Pakistani farmers are burdened with an 18 percent sales tax.

He reiterated that while schemes like the Kisan Card offer temporary relief, the core problem lies in the inability of farmers to secure reasonable rates for their crops in the market. This, he stated, has plunged the agricultural sector into a severe crisis, leading to an extraordinary decline in agricultural exports.

The agricultural sector has suffered a staggering loss of $1 billion in agricultural exports during the first six months of 2025, compared to 2024, according to him. This sharp decline, which includes a 70pc drop in maize exports, 69pc in bananas, 40pc in mangoes, and 31pc in onions and garlic, has resulted in a collective loss of Rs1,264 billion to farmers, with rice and maize alone accounting for Rs1,000bn, he added.

Says a lack of fair crop prices the core issue for farmers

Khokhar attributed these losses to a sharp decline in commodity prices, with wheat, maize, and cotton prices plummeting, severely eroding farmers’ income and purchasing power. Simultaneously, he said, the cost of essential fertilisers has skyrocketed since 2022, making cultivation unviable for many small and medium-sized farmers and leading to a significant drop in fertiliser usage.

He said the crisis is further compounded by sharply declining cotton production, which saw a 30.7pc drop in output as per the Economic Survey 2024-25—the worst performance in nearly a decade. To meet textile demand, Pakistan imported a massive 854,263 tonnes of ginned cotton, costing $1.66 billion, during January-June 2025, he claimed.

Recent rains have also severely damaged the current cotton crop in Sindh and Punjab, further reducing expected yields and quality, he added.

He blamed the downturn on neglected agricultural research, poor marketing systems, and ad-hoc government pricing and subsidy policies. He highlighted the irony that agriculture, despite its significant contribution to employment and GDP, remains one of the least-invested sectors in Pakistan.

To mitigate the crisis, the PKI chief has advised increased investment in agricultural research and development, seed technology and price stabilisation measures for key crops through an independent “Commodity price and export commission.”

He also called for the regulation of input costs, import substitutes, and nutrient-based subsidies on phosphate and potassic fertilizers.

Khokhar warned that without bold reforms, Pakistan’s food security and rural economy may face permanent damage.

Published in Dawn, July 30th, 2025