Pakistan approves wheat and flour distribution policy to stabilize prices

Pakistan’s Punjab province has approved a new wheat and flour distribution policy aimed at regulating the domestic market. According to The News, wheat prices on the open market have reached 5,300 Pakistani rupees per 40 kg, compared with the official benchmark of 3,500 rupees. This means that market wheat prices are approximately 51% above the government-set level. Meanwhile, flour is selling at 160 rupees/kg, compared with the official price of 110 rupees/kg.

On October 19, the Punjab government formally approved the Wheat Release and Flour Distribution Policy for 2026, which took effect immediately. However, wheat deliveries from government stocks to flour mills had already begun on July 14. Under the policy, the government wheat release price for operating flour mills is set at 3,800 rupees per 40 kg. Authorities had previously indicated that this price could be gradually reduced, but the new policy maintains it at the previous level.

To meet domestic market needs, the government had earlier announced plans to transfer 1 mln tons of wheat from the reserves of the state-owned PASSCO to the Punjab Food Department. The volume actually transferred has not yet been specified. The new policy provides for the use of wheat from PASSCO stocks, other suppliers and imports. Wheat allocations among districts will be determined based on population figures or through an alternative mechanism established by the provincial food authorities.

The policy also sets retail prices for subsidized flour at 1,100 rupees per 10 kg bag and 2,200 rupees per 20 kg bag. However, the availability of subsidized flour on the market remains limited. Only approved operating flour mills and licensed small-scale mills will be eligible to receive government wheat. The prescribed extraction ratio for subsidized wheat is 70% flour, 18% fine flour and 12% bran.

Punjab is one of Pakistan’s key wheat-producing and processing regions, making decisions by local authorities important for domestic grain and flour supplies. The new policy establishes procedures for distributing government wheat to processing enterprises and selling finished products at regulated prices. Further market developments will depend on the availability of wheat stocks, the regularity of grain deliveries and demand for flour.

Tags: Pakistan, wheat, flour