Punjab Launches PPP-Based Wheat Policy 2026, No Govt Procurement

The Government of Punjab has formally approved the Wheat Policy 2026, instituting a structured Public-Private Partnership (PPP) model designed to strengthen food security, promote market equilibrium, and completely eliminate direct government expenditure on wheat procurement.

Oversight of the policy shall vest at the Cabinet level with the Standing Committee of Cabinet on Food Security, supported by divisional coordination units and independent monitoring arrangements to guarantee procedural transparency and accountability.

Under the revamped framework, the provincial government will cease all direct involvement in wheat procurement, stockholding, and storage operations. Responsibility for purchasing, financing, warehousing, quality maintenance, and timely release of strategic wheat reserves will shift entirely to qualified private sector entities, while the government retains its statutory regulatory, supervisory, and enforcement authority. This transition is projected to yield substantial fiscal savings without compromising market stability or national food security imperatives.

Private aggregators, to be selected via a transparent and competitive bidding process, will procure wheat directly from growers at a fixed benchmark price of Rs3,500 per 40kg—determined with reference to import-parity pricing applicable during the procurement window. The arrangement assures farmers of guaranteed off-take, prompt digital payments, and elimination of the payment delays historically associated with public sector procurement.

The Punjab government will abstain from any wheat purchases or price interventions that could distort market signals, thereby fostering a fair and competitive environment for producers. The policy explicitly precludes any public-sector procurement outlay, subsidies, inventory accumulation, or contingent fiscal liabilities, with all associated costs and risks borne by the private partners.

In order to safeguard consumer interests, strategic reserves shall be released by private operators in a phased and calibrated manner from September through March, aligned with seasonal demand patterns and peak consumption periods, including Ramadan. Private sector profit margins will be subject to monthly caps established through competitive mechanisms, thereby mitigating risks of profiteering or market distortion.

Public-sector warehouses will continue to be utilised for storage of strategic reserves under a joint custody model, ensuring that the government maintains effective control and oversight over critical food stocks without transferring ownership of public storage infrastructure. The policy reaffirms the province’s unwavering commitment to food security objectives through a balanced, market-oriented, and fiscally prudent PPP approach.