Pakistan’s agriculture sliding into crisis amid soaring production costs and policy neglect

10.11.2025 310 views

Pakistan’s agriculture sector, once the country’s economic mainstay, is fast sliding into crisis as surging production costs and dwindling profitability push farmers to the brink.

Over recent years, the prices of fertilisers, pesticides, diesel, electricity, and farm machinery have skyrocketed, while global crop prices have steadily declined, a combination that has made cultivation unviable for many growers across the country, reported Dawn.

According to Dawn, farmers are facing a dual assault, worsening climate change impacts and collapsing cost competitiveness. Erratic weather patterns, floods, and rising temperatures continue to damage yields, while an imbalance between input and output prices has left farmers struggling to recover even basic costs.

Despite mounting distress, the government, constrained by budgetary pressures and demands from international lenders, has offered little meaningful relief beyond symbolic loan schemes and small-scale pilot projects.

In the past, agriculture remained profitable despite inefficiencies on the ground. The survival depends on adopting modern practices that reduce production costs, boost yields, and open better marketing channels.

Farmers must learn to produce more with less through efficient irrigation, the adoption of renewable energy, and improved soil management if they are to remain competitive in an increasingly challenging environment.

One major challenge lies in fertiliser costs. With Diammonium Phosphate (DAP) prices soaring to nearly PKR Rs14,700 per 50kg bag, many farmers have reduced usage, even as soils suffer from phosphorus deficiency.

Globally, farmers counter this by using organic and biological substitutes, such as compost, bone powder, biogas slurry, and phosphate-enriched manure, which can be replicated locally with minimal investment. High energy costs have also strained farmers.

Transitioning to solar-powered tube wells could alleviate their burden, particularly in Punjab, where diesel pumps are the primary source of irrigation. Yet, little has been done to promote such reforms on a large scale, as cited by Dawn.

To make matters worse, middlemen continue exploiting growers by charging illegal commissions, often consuming up to a quarter of farmers’ profits. Without marketing reforms and cooperative models, the cycle of exploitation will persist. Pakistan’s agriculture is now locked in a struggle for survival, a grim contest where only the most resourceful and adaptive farmers will endure, as reported by Dawn.

 

Source - https://www.chinimandi.com

02.04.2026

USA - Court rejects crop insurance tech vendor's emergency bid to block USDA rule

The federal agency had greenlit the business model three times before reversing course.

02.04.2026

Ukraine plans to expand crop insurance program

The state crop insurance program in Ukraine is planned to be gradually scaled up and expanded to cover a wider range of crops. This was announced by the Minister of Economy, Environment and Agriculture Taras Vysotskyi, as reported by Latifundist.

02.04.2026

Indian hailstorms damage 14,809 hectares of grapes, pomegranates, and onions

Unseasonal rain and hailstorms have affected agricultural production in Baglan taluka, India, impacting multiple crops and farm operations. The event has affected 14,809 hectares (36,586 acres) of farmland and approximately 19,550 farmers.

02.04.2026

UNDP Partners with ATI to Build Sustainable Agricultural Insurance Systems in Tanzania

The United Nations Development Programme (UNDP), in partnership with the Association of Tanzania Insurers, has launched a new Technical Assistance initiative to strengthen agricultural insurance in Tanzania. 

02.04.2026

Kenya introduces invoice financing for fresh produce sector

Avenews, an agri-fintech company, and the Fresh Produce Consortium of Kenya have announced a partnership aimed at addressing cash flow constraints in Kenya's fresh produce sector.

02.04.2026

Romania ranks 1st in EU for sunflower; Agricultural crop production rises across all crops in 2025

Plant-based agricultural production increased in 2025 across all major crops, particularly due to higher yields per hectare, while the cultivated area expanded for most crops, according to provisional data published by the National Institute of Statistics (INS).

01.04.2026

India - Hailstorm damage: Lad orders crop survey, relief for farmers

Labour minister Santosh S Lad on Wednesday directed officials to complete the survey of agricultural and horticultural crops damaged by an unexpected hailstorm in villages across Kalghatagi taluk and other parts of the district and submit the report at the earliest to facilitate relief to farmers as per norms.

01.04.2026

USA - Stray Voltage Case Raises Legal and Insurance Questions for Dairy Producers

Farm legal expert Roger McEowen highlights the legal challenges surrounding stray voltage, a recent court decision, and what it means for agricultural producers.