The Punjab government has convened an urgent meeting to increase wheat procurement quotas for private aggregators, as it struggles to meet its 3 million ton target for the 2026-27 season.
According to reports, the current pool of buyers is too small to achieve the target. Out of 35 approved aggregators, only 10 are actively participating, with combined quotas covering just 1.8 million tons, leaving a significant gap. The situation has been complicated by banks’ reluctance to extend financing to newer entrants, limiting participation in the procurement process.
In response, the government is seeking fresh commitments from private players to purchase additional wheat beyond their allocated quotas. According to officials, some aggregators have shown interest, with two committing to procure 1 million tons each and another 0.5 million tons. Procurement is expected to continue until June 15, as authorities attempt to close the gap before the deadline.
Both federal and provincial governments have already stepped in to reduce risks for buyers. They have agreed to absorb price fluctuations and guarantee the purchase of unsold wheat stocks, ensuring that aggregators are protected from market losses.
Officials also confirmed that aggregators will receive a profit margin ranging from 10 percent to 16 percent, depending on the month, while banks may reduce cash margin requirements to improve financing access.
Despite these measures, concerns remain on the ground. Farmers have criticized delays and policy inconsistencies, arguing that the official support price of Rs. 3,500 per 40kg is not workable under current conditions. With harvesting already over 50 percent complete in South Punjab and expanding in central regions, delays in procurement arrangements risk disrupting the supply chain and affecting farmer incomes.