Agricultural sector faces collapse as government policies fail to support farmers; agro-exports drop by over $1 billion for January-June 2025 period
Official data for January-June 2025 shows that Pakistani farmers suffered over Rs1.26 trillion in losses, with rice and maize accounting for nearly Rs1 trillion of the damages. In the same period, the value of agro-exports dropped by over $1 billion compared to 2024, with major crops like maize, banana, mango, and onion showing severe declines in export volumes.
According to a news report, Pakistan’s agricultural sector, once the backbone of the economy, is on the brink of collapse due to a combination of government neglect, flawed policies, and rising input costs. The country’s cotton, maize, rice, and vegetable sectors have seen significant losses, with farmers facing unprecedented challenges.
Cotton, a vital crop for Pakistan’s textile industry, experienced a 30.7% drop in production, the worst performance in a decade, forcing the country to import 854,263 metric tons of ginned cotton worth $1.66 billion in just six months. Despite this, local farmers remain unsupported, with figures from the Pakistan Cotton Ginners Association (PCGA) showing a sharp decline in cotton arrivals at ginning factories.
Farmers point out that the real problem lies in the lack of support from the system, including no price guarantees, subsidies, or long-term planning. Cotton prices, despite rising nominally, have fallen sharply in dollar terms due to currency depreciation. Input costs, including fertiliser, diesel, and electricity, have increased significantly, making farming unaffordable for many.
Fertilizer usage has dropped drastically, with farmers unable to afford recommended doses, leading to lower yields and even greater losses. Vegetable prices, such as onions, have plummeted, further damaging smallholders’ livelihoods.
Agricultural economists attribute the crisis to years of neglect, with the government continuing to ignore critical needs in research, extension services, and seed development. They stressed that while climate change impacts are severe, Pakistan has not invested in building resilience or contingency planning.
The country’s cotton sector, which once produced up to 14.8 million bales annually, now struggles to produce less than 7.5 million bales. Despite the country’s poor harvests, imports continue to rise, further damaging the competitiveness of local textile mills.
Khalid Mahmood Khokhar, president of Pakistan Kissan Itehad, stated that farmers are working harder than ever but are being punished by rising costs and falling profits. He pointed out that the crisis began when the wheat support price was ignored, demotivating farmers, and now cotton is in a similar situation.
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