Maryam solves crop supply chain problem with EWR financing facility

LAHORE: Punjab Chief Minister Maryam Nawaz has taken decisive steps to solve a billion-dollar problem in Pakistan’s crop supply chains through the launch of the Rs15 billion Chief Minister Punjab Electronic Warehouse Receipt (EWR) Financing Facility.

Officially ratified by the provincial cabinet, this multi-year initiative not only empowers farmers and stabilises wheat prices but also directly addresses deep-rooted inefficiencies in the Punjab’s agricultural system, particularly in maize, rice paddy, and wheat, which collectively represent a $12.6 billion harvest value.

According to the documents obtained by The News, systemic weaknesses in post-harvest supply chains result in staggering losses estimated at $1.1 billion annually, according to calculations based on FY22 crop values and estimates from FAO, USAID, and JEC reports.

The breakdown is sobering: sun-drying practices lead to $154 million in losses, traditional storage accounts for $238 million, unfair price deductions at markets cost farmers $424 million, and quality deterioration adds another $308 million in losses. They not only reduce farmer income but also severely limit Pakistan’s competitiveness in agricultural exports.

Chief Minister Maryam Nawaz’s administration is tackling this challenge head-on through the EWR Financing Facility. By digitising the storage and financing of wheat, starting with the 2025 harvest—the government aims to build a modern, transparent, and efficient supply chain model that can be replicated across other key crops. Under the new scheme, small-scale farmers (owning up to 50 acres) and wheat traders can store their produce in accredited warehouses and receive up to 70% of the commodity’s market value in formal financing, backed by an electronic warehouse receipt verified under Collateral Management Companies (CMC) Regulations 2019.