Source: Ukragroconsult (Ukraine)
According to a report by the US Department of Agriculture’s Foreign Agricultural Service (FAS), Pakistan is expected to produce a record 31.4 million tons of wheat in the 2024-25 marketing year.
According to official figures from the Pakistani government, wheat production is expected to increase by 11% compared to the previous year (28.2 million tons). The company explained that the increase is primarily due to higher production in the Punjab province.
“This year’s record production is due to a significant increase in acreage and yields and is the second consecutive year of record wheat production,” the FAS said. “Good growing conditions during the season, adequate irrigation water and increased use of certified seeds have contributed to the bumper harvest.”
However, following the Pakistani government’s recent decision to end the long-standing practice of buying wheat from farmers at the guaranteed minimum support price, wheat prices have fallen sharply, which is likely to limit sowing in the next crop year.
“In the past, (the government) was the biggest buyer from farmers,” the FAS said. “The decision to stop purchases was taken without prior notice or consultation with growers. Farmers sold the wheat on the open market and wheat prices fell 30 percent below the government support price.”
The government’s decision came after it began allowing private mills to import wheat duty-free, making imported wheat cheaper than prevailing domestic prices.
“It is still unclear whether this year’s policy means a permanent liberalization of wheat prices or just a change for the 2024-2025 crop,” the FAS said.
Population growth and consumer preference for wheat products continue to drive demand in Pakistan, with domestic consumption expected to rise to a record 31.2 million tons in 2024-2025.