Crop yields and income are changing in the agriculture sector as a result of the recent floods and changes in support prices. The income per acre for wheat, sugarcane, and basmati rice is anticipated to increase, while cotton crops have been damaged.
The wheat income per acre is anticipated to rise by 26% year over year, according to Engro Fertilizers Limited’s (EFERT) corporate briefing session for the fourth quarter of the calendar year 2022. In addition, according to the Optimus Research report, the income from sugarcane per acre is anticipated to rise by about 21% YoY while the income from basmati rice per acre is anticipated to rise by 189% YoY.
However, according to the management, cotton will face a 12% YoY decline in their earnings per acre. Analysts attribute this to the increase in support prices from Rs2,200 to Rs3,000 in Punjab and from Rs2,200 to Rs4,000 in Sindh.
The five principal crops—wheat, cotton, sugarcane, rice, and maize—account for nearly 90% of the fertilizer used, according to Waqas Ghani Kukaswadia. Cotton comes in second with a 25% share, followed by wheat with a 50% share. The third-largest share belongs to sugarcane, however, this crop has the highest nutrient content per hectare.
Ghani predicted that “farm economics is projected to improve for wheat moving forward due to stronger grain prices” now that the Sindh Food Department had announced that the support price for wheat will be fixed at Rs4,000 per 40 kg for the 2023 season. However, according to the management, cotton will face a 12% YoY decline in their earnings per acre.
