Pakistan is considering a return to large-scale government wheat procurement in marketing year 2027/28, after several years of shifting grain-market rules. Under preliminary plans, the government food department may purchase 2.5 million tons of wheat at Rs4,500 per 40 kilograms, funding the buys from its own resources. The final procurement framework has not been decided, which has unsettled farmers and flour millers.
What the preliminary plan would do
If confirmed, the state would again act as a major buyer of domestic wheat after a period in which it stepped back from that role. The indicative volume—2.5 million tons—and the proposed support-style price of Rs4,500 per 40kg are the clearest numbers attached to the idea so far. How the purchase would be organised, who would handle logistics, and how it would sit alongside other market rules remain open.
Industry voices also ask how such a programme would fit with Pakistan’s commitments to international lenders to cut subsidies and limit state intervention in markets. That tension has not been resolved in the preliminary outline.
How policy has shifted since 2024
The Progressive Flour Millers Group (PFMG), a processors’ body, says the government’s approach to wheat market regulation has changed repeatedly since MY 2024/25. In 2024, authorities dropped state grain procurement, minimum support prices and subsidies, effectively opening the market to freer pricing. The move came shortly before harvest. Without a large government buyer, wheat prices fell sharply and farmers faced heavier financial pressure.
In the following season, officials urged flour mills to buy more wheat to support the domestic market. After stocks had been built up, a maximum retail flour price of Rs3,000 per 40kg was imposed. PFMG representatives said the cap worsened conditions for processors and caused significant financial losses.
A later attempt to buy through government-appointed aggregators at an indicative Rs3,500 per 40kg also fell short. Insufficient financing meant actual purchases were negligible against a planned 3 million tons.
Why millers want a stable rulebook
PFMG argues that the core problem is not deregulation itself but the lack of a consistent, predictable policy. Frequent changes to procurement and pricing, processors say, make long-term planning harder, weaken investor confidence and raise risks for the country’s food security—the reliable supply of staple grain and flour.
Millers fear another swing in the rules could again move prices and force mills to rethink investment. They are calling on the government to set a clear wheat market framework that gives stable conditions to growers, processors and consumers alike.
Timeline: what has happened so far
- 2024 / MY 2024/25: State wheat procurement, minimum support prices and subsidies were abandoned shortly before harvest; prices fell and farmers came under strain.
- Following season: Mills were encouraged to buy more wheat; a maximum retail flour price of Rs3,000 per 40kg was then imposed, which PFMG said caused processor losses.
- Same period: Aggregator procurement at about Rs3,500 per 40kg, aimed at 3 million tons, largely failed for lack of finance.
- Now (plans for MY 2027/28): Preliminary talk of 2.5 million tons of direct government buying at Rs4,500 per 40kg, with the final framework still undecided.
Aasan alfaaz mein
Sarkar 2027/28 mein phir bari miqdaar mein gandum kharidne ka soch rahi hai—lagbhag 2.5 million ton, 40 kilo ka Rs4,500 par. Abhi final qawaid tay nahi hue, is liye kisaan aur atta mills dono pareshaan hain. Pichhle kuch saalon mein policy baar baar badli: pehle sarkari kharid band, phir mills se kharid, phir atta ki ceiling, phir aggregator scheme fail. Aam logon ke liye matlab yeh hai ke gandum-atta ke rate aur supply tab tak unstable reh sakte hain jab tak clear aur lambi muddat ka system na banay.
