Punjab Misses Wheat Target as Aggregator Model Fails and Grain Flows to Sindh, KP

Punjab’s aggregator-based wheat procurement system failed to deliver the expected results this year, leaving the provincial government short of its 1.5 million tonne wheat procurement target while millions of tonnes of wheat were transported to Sindh and Khyber Pakhtunkhwa, according to officials and agricultural experts.

The Punjab government had introduced the aggregator model by selecting 11 private companies to purchase wheat from farmers, reported Express News.

However, experts said unnecessary objections and lending requirements imposed by commercial banks delayed procurement by two to three weeks, allowing market prices to rise above the government’s support price of Rs. 3,500 per 40 kilograms.

As a result, farmers who sold their wheat immediately after harvesting received only Rs. 3,000 to Rs. 3,100 per 40 kilograms, while larger farmers, traders, and stockists who held back their stocks benefited from higher prices in the open market after wheat production was reported to be lower than expected.

Despite the establishment of official checkpoints, millions of tonnes of wheat were transported from Punjab to Sindh and Khyber Pakhtunkhwa, putting additional pressure on Punjab’s wheat market.

Experts said prices have continued to rise even after the federal government announced plans to import 1 million tonnes of wheat.

In response, the Punjab Food Department has started preparing a multi pronged wheat procurement system for the next season.

The proposed model will combine aggregators with the Electronic Warehouse Receipt (EWR) system and a new procurement mechanism aimed at improving government purchases.

The Punjab government is also considering restructuring rather than dissolving the Punjab Food Department. The proposed reforms include renaming the department, revising its organizational structure, and redefining the roles and responsibilities of its officials as part of broader changes to the province’s wheat procurement framework.