The decision by Punjab government to designate Pakistan Mercantile Exchange (PMEX) as the official trading platform for Electronic Warehouse Receipts (EWRs) under the Chief Minister Punjab EWR Financing Facility marks a monumental step toward transforming agricultural economy.
This move is not just a policy decision, it is a lifeline for farmers, traders and rural economy at large.
For decades, wheat farmers have been plagued by post-harvest losses, middlemen exploitation and a lack of access to fair market prices.
With the introduction of EWRs, a long-standing gap in agricultural value chain is finally being bridged.
Farmers can now store their wheat in accredited warehouses and receive digital receipts, which serve as proof of ownership.
These receipts can be traded electronically via PMEX, ensuring transparency, real-time price discovery and secure transactions — all accessible through mobile phones.
This system creates a robust and an integrated ecosystem offering not only logistical support but also financial tools that farmers need to thrive.
The strategic involvement of SECP and SBP underscores government’s commitment to modernising agricultural markets and promoting rural financial inclusion.
However, this promising development comes at a time when wheat farmers are facing a grave crisis.
Their per-acre production costs have surpassed their income from the produce.
It is imperative that provincial governments step in to lower the cost of production.
Subsidising fertilisers, seeds and electricity for tube wells are essential measures.
Furthermore, targeted education and technical support are needed to help farmers adapt to and benefit from new technologies like EWRs.
If these steps are not taken, ou wheat production will continue to decline, making us increasingly reliant on imports.
This not only puts pressure on our foreign exchange reserves but also ironically ends up subsidising foreign farmers at the expense of our own.
Supporting our farmers is not just an economic imperative — it is a matter of national food security.
