Punjab Government struggles to finalize subsidy proposals for small farmers

The Punjab government has faced indecision regarding proposals to provide subsidies to small farmers on wheat purchases.

Media reports citing sources from the Food department indicate that only 120,000 farmers meet the government’s wheat purchase policy in Punjab. If subsidies are granted to these qualifying farmers, it is estimated that over Rs5 billion will be expended.

The government is currently contemplating offering a subsidy of a few hundred rupees per maund to farmers. However, even with the subsidy, it appears unlikely that the farmers’ protests will cease.

The Food department reports that the government is prepared to purchase wheat with up to 10% moisture, as per policy. However, no district in Punjab has wheat with a moisture content of 10% due to excessive rainfall, with levels exceeding 16%.

It has been alleged that the government is encouraging farmers to sell wheat for political gain, despite having an abundance of wheat supply for the upcoming year. Challenges such as surplus wheat, high moisture levels, and the economic situation are hindering the government’s wheat procurement efforts.

Conversely, farmers are protesting against the government’s failure to purchase wheat. Farmer leader Khalid Bath has warned that the protests will persist if the government does not act to procure wheat from farmers.