LAHORE: The Lahore High Court on Wednesday sought a reply from the Punjab government on a petition challenging the abolition of the traditional announcement of the minimum wheat support price.
Lahore High Court heard the petition against the Punjab government’s decision to end the minimum support price (MSP) system for wheat.
During the hearing, the petitioner Kissan Board’s counsel argued that the provincial government had failed to announce the MSP for wheat this year, potentially causing financial harm to farmers.
The petition further argued that the government’s decision has left farmers at the mercy of mill owners, which could prove detrimental to them.
The lawyer requested the court to direct the government to fix the minimum support price of wheat.
The Lahore High Court has issued a notice to the Punjab government, directing them to submit a response to the petition.
Read More: Pakistan strikes deal with IMF to end wheat support price
Earlier, the federal government has reached an agreement with the International Monetary Fund (IMF) to end the minimum support price (MSP) system for wheat, ARY News reported on Wednesday.
After the agreement, the minimum support price (MSP) of wheat would not be announced for 2025-26, sources said.
Ministry of National Food Security and Research directed the provinces to submit their wheat food security suggestions based on their population.
The ministry is also pondering closing down the state-owned company Pakistan Agricultural Storage & Services Corporation Ltd (PASSCO) due to the irregularities in wheat distribution and finance.
The decision may have a significant impact on the wheat rates and market, as PASSCO has a storage capacity of 1.2 million metric tonne and plays a crucial role in supplying wheat to the provinces based on their requirements.
Notably, the government previously used to procure wheat from farmers after announcing a minimum support price and then supply it to the flour mills, however, the abolishment of the support price was the key demand of the IMF under the bailout package.
