Punjab Unveils Rs15 Billion Smart Relief Package for Wheat Farmers – Direct Support, EWR Storage & Loan Coverage

LAHORE: In a historic move aimed at uplifting the agricultural economy, Punjab Chief Minister Maryam Nawaz Sharif has unveiled a groundbreaking relief package worth Rs15 billion for wheat farmers across the province. Described as the first-of-its-kind, this package targets over 550,000 wheat growers, offering direct financial assistance, loan subsidies, and strategic support through technological intervention.

At the heart of this initiative is the Wheat Support Fund, from which the government will disburse funds directly to farmers using the Kisan Card platform. This ensures transparent, fast, and targeted relief without intermediaries.

Tax Relief and Irrigation Support

As part of the package, wheat farmers have been exempted from paying irrigation and fixed agricultural taxes for the current year. The move is expected to ease the financial burden on farmers amid rising input costs and market fluctuations.

Climate-Resilient Storage with Electronic Warehouse Receipts (EWR)

Addressing the challenges posed by climate change and market instability, the Punjab government will now provide free storage for four months using the Electronic Warehouse Receipt (EWR) system. This digitized system enables farmers to store their wheat securely and receive an electronic receipt, which can then be used within 24 hours to obtain bank loans covering up to 70% of the wheat’s total value.

Loan Markups Covered, Wheat Movement Unrestricted

Additionally, the government will pay the markup on loans—up to Rs100 billion—issued by the Bank of Punjab (BoP) to flour mills and green licence holders for wheat purchases. This measure is expected to inject liquidity into the grain trade and maintain fair wheat prices for farmers.

To improve supply chain efficiency, the ban on the transportation of wheat and flour across provincial and district borders has also been lifted.

Warehouse Expansion and Private Sector Involvement

The BoP has been tasked with financing private sector projects for the construction and renovation of wheat storage warehouses. The Punjab government will provide Rs5 billion in markup subsidies to encourage investment in storage infrastructure, further protecting farmers from post-harvest losses.

Additionally, wheat storage of at least 25% of the total capacity has been made mandatory for licensed buyers, with efforts underway to obtain cabinet approval for mandatory wheat procurement by flour mills and green licence holders.

Export Opportunities and Federal Coordination

To maximize returns for local farmers, the Punjab government will seek federal government approval to export surplus wheat and related products. This initiative aims to stabilize domestic wheat prices while tapping into international demand.

Chief Minister Maryam Nawaz emphasized the administration's commitment to farmer welfare:

“Farmers are our brothers. We stand with them and will always protect their interests. Any farmer who grows wheat will be fully compensated,” she stated.

This comprehensive wheat relief package not only showcases Punjab’s shift toward climate-smart agriculture and digitization but also reflects the government's resolve to strengthen rural livelihoods and modernize the agri-economy.