LAHORE – July 30, 2025
Pakistan’s agriculture sector, once proudly called the backbone of the economy, is now staggering under the weight of government neglect, policy missteps, and skyrocketing input costs — a combination that’s pushing millions of farmers toward financial disaster.
From staple grains to exportable cash crops, every corner of the agricultural spectrum is suffering. While wheat and maize were the first to show signs of trouble, the crisis has now engulfed cotton, fruits, and vegetables — exposing a system unprepared for both climate shocks and economic pressures.
Unprecedented Losses, Collapsing Exports
Official figures from January to June 2025 reveal a staggering Rs1.26 trillion in losses sustained by farmers across the country. Most of the damage stemmed from just two crops — rice and maize — which together accounted for over Rs1 trillion in losses. Agro-exports, too, have taken a nosedive, falling by more than $1 billion compared to the same period last year.
The numbers are sobering: maize exports have plummeted by 70%, bananas by 69%, mangoes by 40%, while onions and garlic have seen a 31% drop in outbound trade. Meanwhile, the cotton sector — vital to Pakistan’s textile industry — is suffering its worst decline in a decade, with yields down 30.7%, according to the Economic Survey 2024-25.
To make up for the shortfall, Pakistan has been forced to import over 854,000 metric tons of ginned cotton in just six months, costing the exchequer $1.66 billion — a bitter irony for a country once self-sufficient in the crop.
“We’re Fighting the Weather and the System”
Progressive farmers say they are now caught in a perfect storm: erratic weather patterns, zero institutional support, and rising production costs. “We were already getting poor returns,” said Shahid Jutt, a cotton grower from Vehari. “Now climate change is punishing us, and the system is nowhere to be found — no subsidies, no price support, no long-term planning.”
The situation is further aggravated by currency depreciation. In 2010-11, cotton sold for Rs5,500–6,000 per maund when the dollar stood at Rs85 — roughly $70. Today, even with prices rising to Rs7,600 per maund, the value in dollar terms has sunk to just $27.
At the same time, input costs have soared: fertiliser, diesel, and electricity prices are now four to five times higher than a decade ago. Fertiliser usage has dropped sharply — 29% for nitrogen and 15% for phosphates — as farmers simply cannot afford the necessary nutrients. That’s resulting in lower yields, worsening the financial pain.
Crashing Prices, Crushed Farmers
While input prices surge, farm-gate prices for produce continue to collapse. Take onions, for example — their market price has fallen by more than 55%, leaving thousands of small-scale growers in deep debt. The same story is unfolding across vegetables and fruit crops, many of which are rotting in the fields due to unviable selling rates.
“This isn’t just a bad season — it’s the fallout of years of institutional negligence,” said agricultural economist Dr. Imran Awan. “The government continues to slash agriculture development budgets. Extension services, research, and seed innovation have been abandoned. Climate change is here, but we’re not preparing for it.”
Back in the early 2010s, Pakistan was producing up to 14.8 million bales of cotton annually. Exports were strong, and imports were minimal. But by 2025, production has slumped below 7.5 million bales — and could dip below 4 million this year due to rain-damaged crops and poor fibre quality. In stark contrast, cotton imports are now exceeding 5 million bales, even as textile mills reduce capacity or shut down altogether.
Regional Disadvantage, National Crisis
Diesel — essential for tractors, harvesters, and irrigation pumps — is now priced at Rs284 per litre. Electricity for farming has become a luxury at over Rs42 per unit. Meanwhile, farmers in neighbouring countries enjoy subsidised or even free energy, giving them a massive edge in regional agricultural markets.
Khalid Mahmood Khokhar, President of Pakistan Kissan Itehad, said, “Farmers are working harder than ever, but getting crushed under the weight of rising costs. There’s no relief, no roadmap. This entire crisis started when the wheat support price was ignored — that broke our confidence. Now cotton is collapsing, and the silence from the government is deafening.”
A Call for Reform Before It’s Too Late
The PKI has called for a series of urgent reforms, including the creation of an independent commodity pricing and export commission, regulated input costs, and nutrient-based subsidies on fertilisers to help ease the financial burden on farmers.
“We need investment in agricultural research, seed technology, and climate-resilient farming — not just lip service,” said Khokhar. “If we don’t act now, the damage to our food security and rural economy will be beyond repair.”
