Latest news with #PakistanKissanIttehad
Business Recorder
29-07-2025
- Business
- Business Recorder
H1CY25 agro exports decline by $1bn YoY, says PKI president
LAHORE: Pakistan has incurred a staggering loss of USD 1 billion in agro-exports during the first half of 2025 (January–June), as compared to the same period in 2024, a situation that demands urgent intervention through the establishment of a 'Commodity Price and Export Commission'. This proposed body would monitor domestic production, match it with consumption needs, and recommend export strategies for surplus commodities. Pakistan Kissan Ittehad (PKI) President Khalid Mahmood Khokhar, while addressing a press conference at the Lahore Press Club, said the country witnessed a 70 percent decline in maize exports, 69 percent in bananas, 40 percent in mangoes, and 31 percent in onions and garlic during the first half of the year. He claimed that farmers collectively suffered losses worth PKR 1,264 billion, with maize and rice alone accounting for nearly PKR 1,000 billion. Khokhar pointed to a drastic fall in commodity prices that has slashed farmers' incomes and weakened their purchasing power. Wheat prices have dropped from Rs 3,900 to Rs 2,200 per maund, maize from Rs 2,900 to Rs 1,900, and cotton from Rs 7,700 to Rs 6,700. At the same time, the prices of essential agricultural inputs, particularly fertilizers, have surged since 2022, leaving many small and medium-sized farmers unable to apply recommended doses. Fertilizer off take has declined by 29 percent for nitrogen-based fertilizers and by 15 percent for phosphates. He added that vegetable growers also suffered heavy losses, with onion prices plunging by more than 55 percent. Khokhar lamented that Pakistan's cotton production has continued to collapse. According to the Economic Survey 2024–25, cotton output dropped by 30.7 percent - the worst performance in nearly a decade. To meet the demands of the textile industry, the country imported 854,263 metric tons of ginned cotton in the first half of 2025, incurring an import bill of USD 1.66 billion. He compared the current situation to the early 2010s when cotton production peaked at 14.8 million bales and exports reached 1.1 million bales, while imports remained between 200,000 and 500,000 bales. In contrast, cotton production has now fallen below 7.5 million bales and may drop below 4 million bales this year due to rain-induced damage in Sindh and Punjab. He said only 1.3 million bales have arrived at ginning factories so far, and the fiber quality has also suffered due to heavy rains. Expressing deep frustration, Khokhar said farmers were working harder but earning less. He said that fertilizers were unaffordable, diesel was eating into profits, and the government was offering no relief. He blamed the crisis in part on the delay in announcing the wheat support price, which negatively affected not only wheat but also cotton cultivation. He alleged that the ongoing crisis was a result of neglected agricultural research, poor marketing mechanisms, and erratic pricing and subsidy policies. He criticized the minimal public investment in agriculture despite its key role in employment generation and contribution to GDP. According to him, there has been a persistent lack of focus on innovation, extension services, and climate resilience. Copyright Business Recorder, 2025
Business Recorder
21-06-2025
- Business
- Business Recorder
PKI urges govt to set up Agri Price Commission, Agri Export Authority
LAHORE: Pakistan Kissan Ittehad (PKI) has urged the government to establish an Agricultural Commodities Price Commission to ensure a transparent pricing mechanism that guarantees farmers at least a 25 percent return on their investment. In addition, PKI also called for the creation of an Agricultural Export Authority to stabilize domestic prices and promote sustainable marketing of surplus produce. PKI President Khalid Mahmood Khokhar made these demands while speaking to journalists the other evening. He also called for the removal of the 18 percent GST on seed cotton, the abolition of GST on tractors and related implements, and the introduction of a uniform electricity tariff of Rs 10 per unit for irrigation tube-wells. 'Without urgent reforms, experts warn that Pakistan's agricultural sector, which remains the backbone of its economy is on an accelerating downward spiral, with far-reaching consequences for food security, economic resilience, and social stability,' he remarked. Reacting to the Punjab budget, he criticized the mere 10.75 percent increase in agriculture allocations, arguing that it reflects either a gross underestimation of the crisis facing the sector or a deliberate attempt to downplay its severity. 'Despite these alarming signals, the Government of Punjab has allocated only Rs 129.8 billion for agriculture in the 2025–26 budget a modest 10.75 percent increase from last year's Rs 117.2 billion. In the face of a multi-trillion-rupee crisis, this nominal increment of Rs 12 billion is widely seen as inadequate and dismissive of the sector's plight,' said PKI President Khalid Mahmood Khokhar. Adding to farmers' concerns is the government's proposal to tax agricultural income; a move many believe demonstrates a profound disconnect from the economic hardships currently faced by the farming community. Applying tax slabs designed for stable corporate businesses to climate-affected farmers struggling with water scarcity could prove disastrous. Such a policy risks deepening rural poverty, discouraging investment, and further destabilizing an already fragile sector, he warned. The affordability crisis among farmers has reached critical levels. A steep decline in fertilizer usage, particularly urea and DAP along with a significant drop in tractor sales, indicates that farmers are unable to invest during the current Kharif season. The prospect of declining cotton yields is increasing, and the potential impact on the upcoming Rabi wheat crop is also cause for concern. If this downward trend continues, it could trigger a dangerous food security emergency. Khokhar pointed out that Pakistan's agricultural sector is in deep crisis, with growth plunging by 5.84 percent over the past year, and major crop production shrinking by more than 13 percent. Agricultural exports have also sharply declined in 2024–25, laying bare the sector's deep structural weaknesses. Maize exports fell by a staggering 86 percent to just USD 58.9 million, while rice exports dropped by 15 percent to USD 3.3 billion. Copyright Business Recorder, 2025
Business Recorder
19-06-2025
- Business
- Business Recorder
PKI for establishing transparent pricing mechanism
ISLAMABAD: As Pakistan's agriculture sector faces one of its worst downturns in recent years, the Pakistan Kissan Ittehad (PKI) has called on the government to establish a transparent pricing mechanism and create an Agri Export Authority (AEA) to stabilise local markets and ensure food security. PKI President Khalid Mahmood Khokhar urged the federal government to form an Agriculture Commodities Price Commission (ACPC) that guarantees a minimum 25 percent Return on Investment (ROI) to farmers. He said that the move is vital for addressing the growing imbalance between domestic supply and demand while also creating incentives for future agricultural growth. In order to ensure stability in local markets and promote sustainable marketing operations, the creation of an AEA is inevitable, Khokhar said. He added that such an authority would help manage surplus production, balance domestic prices, and pave the way for consistent export strategies. He also called for the immediate abolition of the 18 percent GST on seed cotton, as well as the removal of the 14 percent GST on tractors and 18 percent on tractor-mounted implements, to encourage mechanised farming and improve productivity. Furthermore, Khokhar demanded a uniform electricity tariff of Rs10 per unit for irrigation tube wells to ease farmers' costs. Highlighting the gravity of the situation, he noted that the agriculture sector's growth contracted sharply by 5.84 percent in the last year, dropping from 6.4 percent to just 0.56 percent, while the production of major crops declined by 13.49 percent compared to the previous year. Cotton production fell drastically to 5.55 million bales, 50 percent below the target and 34 percent lower than last year, causing the cotton import bill to surge to an expected $4.45 billion 178 percent higher than last year's $1.6 billion. Wheat output also dropped by 8.91 percent to 28.98 million tons, representing an opportunity loss of approximately Rs250 billion in the international market, while maize production declined by 15.4 percent to 8.24 million tons, and sugarcane production decreased to 84.24 million tons from 87.64 million tons. Khokhar further pointed out that maize farmers are facing a severe crisis due to a sharp fall in market prices, with rates plunging by Rs1,200 per 40kg within a month following the arrival of fresh crops. Despite these alarming trends, the Punjab government's agriculture budget for the financial year 2025-26 increased only marginally by 10.75 percent to Rs129.8 billion, which Khokhar described as a token increment insufficient to tackle the multi-thousand-billion-rupee crisis facing the sector. He warned that such inadequate measures fail to address the depth of the problem and urged immediate structural reforms to safeguard farmers' livelihoods and ensure long-term food security for the country. Copyright Business Recorder, 2025
Express Tribune
16-06-2025
- Business
- Express Tribune
Punjab earmarks Rs130b for agriculture amid scepticism
The Punjab government on Monday unveiled a significant 10.7% increase in its agriculture sector budget for the upcoming fiscal year 2025-26, allocating Rs129.8 billion compared to Rs117.2 billion in FY25. However, the announcement was immediately met with scepticism from farmers' representatives, who argued that financial packages could not help without fundamental reforms to ensure fair crop prices. Provincial Finance Minister Mian Mujtaba Shujaur Rehman, during his budget speech, stated that the total development outlay for agriculture, livestock and dairy development, irrigation and water in FY26 would be Rs123 billion, with an additional Rs56.2 billion being earmarked as non-development funds. This conflicts with the combined Rs129.8 billion agriculture sector outlay presented in budget documents. These papers reveal that the total Annual Development Programme for the agriculture sector will be Rs80 billion. This comprises 37 schemes, where 16 ongoing projects will receive Rs32.4 billion and 21 new schemes will get Rs47.6 billion. Key initiatives include the Chief Minister's Punjab Hi-Power Tractor Programme, for which Rs10 billion has been allocated, the CM's Green Tractor Programme Phase-II (Rs5.5 billion) and the CM's Programme for Water Efficient Agriculture (Rs2 billion). Other notable projects are agricultural farm mechanisation (Rs0.7 billion), Fasal Bema (Rs1.5 billion), transformation of agriculture in Potohar (Rs1 billion), Green Pakistan (Rs20 billion), solarisation of tube wells (Rs8.7 billion) and Kissan Card (Rs6.3 billion). An agricultural subsidy of Rs10 billion has also been set aside. Livestock and dairy development has secured a funding of Rs5 billion, which will support 16 schemes. Of these, nine ongoing schemes will get Rs2.8 billion and seven new projects will receive Rs2.2 billion. The allocation for the CM Punjab Livestock Card scheme is Rs1 billion. Irrigation has received a hefty Rs38 billion that will go to 120 schemes – 65 ongoing projects with Rs24.8 billion and 55 new schemes having Rs13.2 billion. The water sector allocation is Rs6 billion, supporting 47 ongoing schemes (Rs4.95 billion) and a new scheme (Rs1.05 billion). Expressing deep dissatisfaction, Pakistan Kissan Ittehad President Khalid Khokhar said, "We do not need any package from the federal or provincial government; we need prices for our produce." He said that the cost of production was higher than market prices for major crops such as wheat and corn. "Farmers are frustrated due to the absence of support prices as their livelihoods are at stake." Khokhar added that fertiliser sales had shrunk 30% along with tractor demand, which dropped 50% from 18,000 to 9,000 units in the first five months of calendar year 2025. The drop comes despite distribution of around 1,000 tractors by the government, he mentioned. Drawing comparison, he pointed out that farmers in India were in a better position, "who know the price for their next crop before the sowing season". "That is called futures trading; we need to put our house in order."
Business Recorder
03-06-2025
- Business
- Business Recorder
Farmers warn govt against GST imposition on agri inputs
LAHORE: The Pakistan Kissan Ittehad (PKI) has warned the government against imposing general sales tax (GST) on agricultural inputs in the upcoming budget, stating that such a move would deal a final blow to the already struggling agricultural sector and further damage the national economy. 'The government should instead take immediate steps to reduce the cost of agricultural production,' said PKI President Khalid Mahmood Khokhar during a press conference on Monday. Khokhar accused the current leadership of pursuing policies that serve their political interests at the expense of farmers, causing irreparable damage to the sector and contributing to a sharp decline in crop production. 'Around the world, agriculture and food security are considered top priorities by governments. Unfortunately, in Pakistan, the sector is being undermined due to pressure from international financial institutions,' he said. Flanked by fellow PKI members, Khokhar highlighted the country's rapid population growth, warning that Pakistan is adding hundreds of thousands of mouths to feed every year. 'If we fail to stabilise and strengthen our agricultural system, we are heading toward catastrophe,' he warned. He further criticised the imbalance in taxation, noting that while there is no tax on imported cotton, locally grown cotton is subject to 18% GST. 'As a result, cotton production has plummeted from 14.7 million bales to just 5 million,' he said. He added that the country's import bill continues to swell due to the increasing reliance on imported food, while exports of key crops like mangoes, kinnow, and maize have halved in the past year. The PKI representatives emphasized that they are not seeking charity - only fair returns for their produce in line with international standards. 'Farmers should be able to earn a reasonable profit for their hard work,' they insisted. Khokhar painted a grim picture of farmers' current conditions, saying many are in rags and unable to apply adequate amounts of fertilizer or other inputs to their fields, resulting in declining per-acre yields. 'Farmers don't even have enough money to meet household expenses. Some have even had to postpone their daughters' weddings due to poor returns on their wheat crops,' he lamented. The PKI also rejected the Rs 15 billion relief package announced for wheat growers, calling it grossly insufficient against the estimated Rs 1,600 billion in losses. Khokhar urged the Punjab agriculture minister to fulfill his responsibility and work actively to improve the livelihoods and well-being of farmers. Copyright Business Recorder, 2025
