By Azeem Ahmed Khan

An official assessment has put the indicative price of wheat at Rs4,542 per 40kg for the 2026-27 crop, based on production costs and a 25% return on investment under average conditions in Punjab.

According to an official document available with Wealth Pakistan, the assessment estimates the gross cost of producing wheat at Rs159,009 per acre, assuming an average yield of 1,800 kilograms per acre.

On this basis, the production cost works out at Rs3,534 per 40kg at the farm level. The assessment adds Rs100 per 40kg in marketing expenses, taking the cost at the mandi gate to Rs3,634 per 40kg.

To provide a return on investment, the calculation incorporates a 25% investment incentive amounting to Rs908 per 40kg. After including this incentive, the document places the indicative wheat price at Rs4,542 per 40kg for the 2026-27 crop.

The detailed costing also provides a breakdown of expenses throughout the production cycle. Costs covering land preparation, sowing, fertilizers, plant protection, irrigation and irrigation labour have collectively been estimated at Rs93,209 per acre.

Fertilizers constitute a major component of these operating costs, with total fertilizer-related expenditure calculated at Rs47,859 per acre. This includes Rs6,900 for 1.5 bags of urea, Rs25,860 for 1.5 bags of DAP and Rs13,530 for one bag of SOP. Transportation adds Rs800, while fertilizer application labour costs another Rs769.

The assessment puts the cost of initial land preparation at Rs11,500 per acre, including Rs8,000 for two ploughing or cultivation operations and Rs3,500 for planking.

Seed-bed preparation and sowing operations are estimated at another Rs20,000 per acre. These include Rs4,000 for ploughing or cultivation, Rs3,500 for planking, Rs6,500 for 50kg of seed, Rs1,000 for seed treatment and Rs5,000 for tractor drill charges.

Plant protection through weedicides or herbicides, including labour charges, is assessed at Rs4,000 per acre. Irrigation expenses are placed at Rs3,850, while labour for irrigation and watercourse cleaning adds Rs6,000.

Beyond these cultivation expenses, harvesting and threshing through a combine harvester are estimated at Rs8,000 per acre. The assessment also includes Rs50,000 as land rent for six months and Rs7,800 in management charges, taking the overall gross production cost to Rs159,009 per acre.

Credit: INP-WealthPk