Punjab wheat procurement misses target as aggregators deliver 0.16 million tonnes

Wheat procurement by aggregators for the Punjab Food Directorate has reached only about 0.16 million tonnes by the end of May 2026, remaining far below the revised target of 0.86 million tonnes and the original goal of 3 million tonnes, The News reported. 

The end of May is considered a key period for wheat buying operations. According to the Punjab Food Directorate, nearly 75% of wheat sale and purchase activity usually takes place during the month because it follows the peak harvest season.

Farmers generally sell early to clear stocks, while market arrivals are also at their highest during this period.

Market insiders said missing the May procurement window leaves limited room to achieve targets later. They said the low procurement level has raised concerns over Punjab’s wheat reserves for the coming months, particularly as open market wheat prices have started rising and short supplies are being reported.

According to an estimate, Punjab needs at least 2.5 million tonnes of government-controlled wheat stocks this year to meet requirements until April 2027, given the size of the 2025-26 crop.

The Punjab Food Directorate said aggregators were required to supply wheat according to the target from September onwards and still had time to meet their commitments. However, less than 20% of the revised target and just over 5% of the original target had been achieved so far.

Sources claimed that negligible quantities had been purchased directly from farmers, while the remaining volume consisted of impounded grain.

The procurement gap has also been linked to the pricing structure. Market sources said the wheat procurement price fixed by the provincial government did not provide an incentive for farmers to sell to aggregators.

The original procurement target was first set at 3 million tonnes and later reduced to 0.86 million tonnes, but the revised target has also not been met.