The Punjab government has decided to intervene by releasing its grain reserves and setting a fixed price of Rs2,900 per 40kg for public-sector wheat. A summary of the proposed price has been forwarded to Chief Minister Maryam Nawaz for final approval, according to a spokesperson from the Commodities and Price Control Department.
According to media reports, wheat and flour prices in Punjab have surged sharply, with wheat rising by Rs300 this week to Rs3,100 per maund (40kg). Over the past month, wheat prices have increased by around Rs1,000 per 40kg, while a 20kg bag of flour has climbed approximately Rs500.
Currently, the department holds 0.89 million tonnes of carryover wheat from last year’s procurement. As open market prices surpass Rs3,100 per 40kg, concerns over affordability have grown.
The rising cost of wheat is also putting pressure on roti prices, with tandoor operators warning of a possible Rs2 increase per bread, currently priced at Rs14.
Pakistan’s wheat production for the 2024-25 season is 28.98 million tonnes, harvested from 22.5 million acres—far short of the target of 33.58 million tonnes and last year’s 31.8 million tonnes.
Given the country’s population of over 250 million and an annual per capita wheat consumption of 115kg, this yield is insufficient to meet the nation’s food needs. An additional 1.2 million tonnes is needed for seed, while a portion of the harvest is also used in animal feed, replacing maize.
This season marks a shift in policy, as both federal and provincial governments, under agreements with international donors, have stepped back from wheat procurement and declined to set a minimum support price, moving away from years of market regulation.
Chief Minister Maryam Nawaz has criticized “mafias” manipulating the wheat trade, claiming that investors are purchasing grain from farmers at low rates and later selling it to the government at inflated prices, as seen last season when procurement prices reached Rs4,000 per 40kg.
In the past, governments procured 5-7 million tonnes of wheat annually—over 4 million tonnes by Punjab alone—primarily for strategic reserves and as a buffer stock. These reserves were traditionally released to flour mills in the fall to stabilize market prices.
