Sindh Approves Extra Subsidy for Wheat Farmers Who Sell Crop to Government
KARACHI, PAKISTAN — WEB DESK: The Sindh cabinet has decided to provide additional financial support to wheat growers who sell their crop to the provincial government, while advancing a broader subsidy programme aimed at small farmers ahead of the 2026-27 Rabi season.
The decision was taken at a provincial cabinet meeting chaired by Sindh Chief Minister Syed Murad Ali Shah, where ministers reviewed proposals covering DAP fertiliser subsidies, wheat procurement incentives and targeted assistance for growers.
Under the cabinet decision, farmers who sell wheat to the Sindh Food Department will receive additional incentives for participating in government procurement. Other eligible small wheat growers will also remain covered under the wider support programme.
However, the government has not yet publicly specified the exact per-acre or per-bag value of this additional procurement-linked subsidy in the report reviewed. It would therefore be premature to attach a specific rupee amount to the newly approved incentive.
DAP Subsidy for Farmers With Up to 25 Acres
The cabinet was briefed that the expected retail price of a bag of diammonium phosphate (DAP) fertiliser is Rs17,904 for the coming season.
The federal government has proposed a Rs3,500 subsidy per DAP bag, equivalent to roughly 20% of the projected retail price, according to the cabinet briefing.
The provincial government is considering a targeted mechanism for wheat farmers owning up to 25 acres of land, with the objective of directing support towards smaller growers rather than providing an unrestricted subsidy across the agricultural sector.
A Sindh cabinet agriculture subcommittee had earlier reviewed the expected rise in DAP prices and possible relief measures for the Rabi 2026-27 season. Agriculture Minister Muhammad Bux Khan Mahar said relief for growers was among the government’s priorities.
Extra Incentive Linked to Government Wheat Sales
The most significant new element of Tuesday’s cabinet decision is the link between additional support and government procurement.
Growers who sell wheat directly to the Food Department will be offered an additional incentive, according to the cabinet briefing.
The move appears designed both to support farmers and encourage participation in the provincial procurement system, which is important for maintaining strategic wheat stocks and managing food security.
But the distinction between the programmes is important: the Rs3,500 figure relates to the proposed federal DAP subsidy per bag, while the amount of the newly announced additional subsidy for farmers selling wheat to the Sindh government was not disclosed in the report.
Those two measures should not be presented as the same subsidy.
New Farmers to Be Registered
The cabinet also approved the registration of new farmers under the Sindh Wheat Growers Support Programme.
Farmers already registered with the programme will undergo fresh verification, while land ownership and agricultural holdings will be digitally checked.
The government said the digital verification system would be used to identify and remove fake, ineligible or duplicate beneficiaries, with the aim of ensuring that public money reaches genuine wheat growers.
Chief Minister Murad Ali Shah directed officials to prepare a comprehensive implementation and digital-verification roadmap.
He said the subsidy programme should be targeted, transparent and technology-based, with small farmers receiving priority.
More Than 333,000 Farmers Received Previous DAP Support
Sindh officials also presented figures from the previous wheat-support programme.
According to the cabinet briefing, 333,127 farmers received DAP subsidies, while 314,317 growers received urea subsidies under the earlier programme.
Officials told the cabinet that wheat acreage and production increased significantly during 2025-26 following the fertiliser-support measures. That assessment is the Sindh government’s account of the programme’s results; the cabinet report reviewed does not provide enough independent data to establish how much of the increase was caused specifically by the subsidies.
The province has used large-scale direct support before. Under the 2025 Wheat Growers’ Support Programme, Sindh approved cash assistance for DAP and urea purchases, backed by digital land-record and beneficiary verification.
Rs20 Billion Wheat Support Already in Budget
The latest decision comes against the backdrop of a broader provincial commitment to wheat-sector support.
During Sindh’s 2026-27 budget process, Murad Ali Shah announced Rs20 billion in support for the wheat sector. He said the province had supported procurement of one million tonnes of wheat at Rs8,750 per 100 kilograms during 2025-26.
Earlier in August, the provincial cabinet also approved a Rs20 billion DAP subsidy package aimed at wheat growers with holdings of up to 25 acres, with more than 300,000 farmers expected to benefit.
The latest cabinet decision therefore builds on an existing agricultural-support framework rather than creating Sindh’s first wheat subsidy programme.
Wheat Procurement Price Under Review
The cabinet also reviewed the mechanism for determining the minimum support price for the next wheat crop.
Officials were directed to incorporate recommendations prepared by the cabinet’s agriculture subcommittee before the pricing mechanism is finalised.
This means Tuesday’s meeting should not be interpreted as announcing a final new minimum support price for the forthcoming crop.
The cabinet discussed the pricing framework, but the Express report does not provide a newly approved procurement price for the 2026-27 wheat crop.
That distinction is particularly important for farmers making planting and input decisions ahead of the Rabi season.
Sindh Faces Pressure Over Wheat and Flour Prices
The policy changes come as Sindh continues to face pressure in its wheat and flour markets.
Retail flour prices have recently risen in parts of Karachi and Hyderabad, while the provincial government has been trying to stabilise supplies through its available wheat stocks and other measures.
Last month, the cabinet allowed flour mills to maintain wheat stocks for up to three months instead of one month, while requiring them to sell flour at a notified price of Rs112 per kilogram under that policy.
The government has therefore been pursuing measures on both sides of the wheat market — supporting growers and procurement while attempting to maintain supplies and manage prices for consumers.
Support Programme to Prioritise Small Growers
The latest cabinet decision puts particular emphasis on growers owning no more than 25 acres and on farmers who participate in government wheat procurement.
Digital verification is intended to reduce duplicate or fraudulent claims, while registration will be reopened so previously unregistered eligible growers can enter the programme.
For farmers, however, two key details remain to be finalised or publicly clarified: the exact amount of the additional procurement-linked subsidy and the final support-price mechanism for the next wheat crop.
Until those figures are formally announced, the policy should be reported as an approved framework for additional assistance rather than as a fully priced new procurement package.
