Karachi: Pakistan’s agriculture sector continues to suffer massive losses due to weak storage infrastructure, prompting experts to question the effectiveness of the federal government’s Rs7.1 billion allocation for agricultural storage facilities in Budget 2026-27.
According to Beyond Time News, industry experts believe the funding falls far short of addressing a crisis that causes annual wheat losses exceeding Rs140 billion. When losses from fruits, vegetables, and other crops are included, the overall economic damage becomes significantly larger.
Agriculture remains a cornerstone of Pakistan’s economy, contributing to food security, employment, and exports. However, inadequate storage facilities continue to undermine the sector’s performance and profitability.
Weak Storage System Hurts Farmers and Consumers
Agriculture Republic Co-Founder Aamer Hayat Bhandara described storage infrastructure as one of the weakest parts of Pakistan’s agricultural value chain. He noted that farmers face challenges such as limited warehousing capacity, outdated facilities, poor handling practices, and insufficient cold-chain networks.
As a result, large quantities of agricultural produce spoil before reaching markets. While government procurement programs provide some storage support for wheat, many other crops remain highly vulnerable to post-harvest losses.
Farmers growing maize, fruits, vegetables, and pulses often struggle to preserve their produce due to the lack of modern storage facilities. Consequently, they face lower incomes and limited bargaining power.
Agricultural Losses Reach Alarming Levels
Mahmood Nawaz Shah, Vice President of the Sindh Abadgar Board, said Pakistan loses approximately 35% of agricultural output at different stages of production and marketing.
These losses occur before harvest, after harvest, during transportation, and throughout storage processes. Therefore, the impact extends far beyond wheat alone.
The situation is particularly serious in the horticulture sector. Pakistan produces nearly 30 million tonnes of fruits and vegetables every year. However, the country has less than one million tonnes of cold-storage capacity.
This mismatch leaves millions of tonnes of perishable produce exposed to spoilage. Consequently, farmers lose income while consumers often face higher prices.
Grain Storage Capacity Still Falls Short
Pakistan currently produces nearly 29.6 million tonnes of wheat annually. Despite this substantial output, experts estimate that modern storage facilities remain short by 300,000 to 500,000 tonnes.
Without sufficient storage capacity, authorities and private businesses struggle to preserve crops effectively. Moreover, poor storage conditions increase the risk of pest infestations, moisture damage, and quality deterioration.
Experts warn that these losses directly affect food security and market stability.
Financing Challenges Force Distress Sales
Beyond infrastructure issues, many farmers lack access to affordable financing. According to Bhandara, financial institutions show limited interest in providing post-harvest loans.
As a result, farmers often sell their produce immediately after harvest when market prices are at their lowest. This practice reduces their earnings and prevents them from benefiting from future price increases.
Furthermore, inefficiencies in wholesale markets create additional challenges. Farmers frequently encounter issues related to commissions, weighing systems, and market fees.
For highly perishable crops, experts estimate post-harvest losses range between 20% and 40%, depending on the commodity and location.
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New Financing Facility Welcomed by Experts
Despite concerns about the budget allocation, experts welcomed the government’s decision to introduce a storage financing facility.
Ahmad Jawad, Chief Organiser of the Pakistan Business Forum, described the initiative as a positive step toward strengthening agricultural value chains.
He said food security depends not only on increasing production but also on preserving agricultural output. Therefore, better storage systems can help reduce waste, improve profitability, and create lending opportunities for banks.
Additionally, stronger storage infrastructure could enhance Pakistan’s export competitiveness by improving product quality and supply consistency.
Reforms Needed Beyond Infrastructure
Experts argue that infrastructure investments alone will not solve the sector’s problems.
Pakistan’s storage network remains fragmented among government agencies, provincial departments, private traders, millers, commission agents, and farmers. Consequently, coordination challenges continue to affect efficiency.
Bhandara recommended several reforms, including:
- A national warehouse receipt system
- Digital inventory management
- Commodity tracking mechanisms
- Stronger public-private partnerships
- Better integration of financing and crop insurance
According to him, policymakers should transform storage facilities into financial and marketing assets rather than treating them as simple warehouses.
Storage Can Stabilize Food Prices
Experts also emphasize the role of storage in stabilizing agricultural markets.
When farmers cannot store crops or secure financing, they must sell immediately after harvest. This increases supply and pushes prices down.
Later, however, shortages often emerge due to poor stock management and speculative market behavior. As a result, consumers face higher prices.
This cycle has repeatedly affected commodities such as wheat, maize, onions, and potatoes.
Energy Shortages Remain a Major Obstacle
Another challenge involves electricity supply. Modern cold-storage facilities require uninterrupted power, particularly for perishable products.
However, many rural areas continue to experience long power outages. Mahmood Nawaz Shah noted that some regions face electricity shortages lasting 14 to 16 hours daily.
Consequently, businesses struggle to operate cold-storage facilities efficiently. Without reliable energy supplies, investments in storage infrastructure may fail to deliver their full benefits.
Need for a Comprehensive Agricultural Strategy
Industry representatives also criticized the federal budget for lacking a broader agricultural roadmap.
While government leaders mentioned agriculture during budget discussions, experts say policymakers offered few concrete programs to transform the sector.
They argue that Pakistan needs a long-term strategy focused on storage, exports, financing, energy availability, and supply-chain modernization.
Without such reforms, agricultural losses will continue to burden farmers, weaken food security, and limit the country’s export potential.
As Pakistan seeks to strengthen its economy, experts believe reducing agricultural waste could offer one of the fastest and most effective ways to improve productivity and increase rural incomes.
FAQs
Why are experts criticizing the Rs7.1 billion storage allocation?
Experts believe the amount is too small compared to annual agricultural losses, which exceed Rs140 billion in wheat alone.
How much agricultural produce does Pakistan lose annually?
Industry experts estimate that Pakistan loses around 35% of agricultural output through pre-harvest, post-harvest, transportation, and storage inefficiencies.
Why is cold storage important for agriculture?
Cold storage helps preserve fruits, vegetables, and other perishable products, reducing spoilage and improving food security.
What challenges do farmers face after harvest?
Farmers often lack storage facilities and financing options, forcing them to sell produce at lower prices immediately after harvest.
What reforms do experts recommend?
Experts support warehouse receipt systems, digital inventory management, commodity tracking, crop insurance integration, and stronger public-private partnerships.
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