The Punjab government has approved the Wheat Policy 2026, introducing a Public-Private Partnership (PPP) framework aimed at enhancing food security and market stability while eliminating government procurement costs.
The policy will be overseen at the Cabinet level by the Standing Committee of Cabinet on Food Security, with divisional-level management and independent monitoring mechanisms in place to ensure transparency.
Under the new policy, the government will no longer be involved in stockholding or direct wheat procurement. Instead, the private sector will take responsibility for purchasing, financing, storing, maintaining, and supplying strategic wheat reserves, with the government retaining an oversight and regulatory role. The shift is intended to reduce public expenditure while maintaining stability in the wheat market.
Private sector aggregators, selected through a competitive process, will buy wheat directly from farmers at a benchmark price of Rs 3,500 per 40kg, based on import-parity assessments for the procurement period. This ensures that farmers have assured market access, timely digital payments, and protection from delays often seen in traditional public procurement methods.
The Punjab government will not engage in wheat purchases but will ensure fair and competitive markets for farmers without distorting prices. The policy guarantees no public procurement expenditure, subsidies, stock accumulation, or fiscal liabilities, with the private sector fully responsible for the costs and maintenance of the wheat reserves.
To protect consumers, the government will release strategic wheat reserves in a staggered manner from September to March, matching seasonal consumption patterns and addressing market pressures during winter and Ramadan. Profit margins for private partners will be capped on a monthly basis through competitive processes, ensuring stability and preventing market manipulation.
Public warehouses will be used for holding reserves under joint custody, with the government maintaining strategic control over the wheat stocks. The policy ensures that food security goals are upheld, without privatizing public storage assets.