Wheat policy faces uncertainty ahead of 2027-28 season

Wheat sector faces another year of uncertainty, with no clear policy framework yet announced for the 2027-28 marketing season, raising concerns about food security and the interests of farmers, consumers and flour millers.

Wheat sector faces another year of uncertainty, with no clear policy framework yet announced for the 2027-28 marketing season, raising concerns about food security and the interests of farmers, consumers and flour millers.

The Progressive Flour Millers Group (PFMG), which represents flour processors, says shifting government policies since the 2024-25 marketing year have undermined confidence across the sector.

Majid Abdullah, the group’s president, said the government’s decision in 2024 to withdraw from wheat procurement and deregulate the trade had been made without adequate consultation or a clear transition plan.

The situation worsened for flour millers in the 2025-26 marketing year, according to PFMG chairperson Khaleeque Arshad. He said the government had encouraged mills to buy larger quantities of wheat to support the market, prompting them to invest heavily and purchase stocks.

But the food department subsequently imposed a maximum retail price of Rs3,000 per 40 kilogrammes of flour, Arshad said, undermining the commercial viability of the wheat purchases and exposing mills to losses worth billions of rupees.

A further procurement scheme was introduced for the following marketing year, with government-appointed aggregators expected to buy wheat at an indicative price of Rs3,500 per 40 kilogrammes. Abdullah said the initiative lacked adequate financial arrangements.

The scheme reportedly faltered after banks withdrew their support, resulting in negligible procurement against a target of three million tonnes.

For the 2027-28 marketing year, the Food Directorate is reportedly considering a return to direct wheat procurement, in another shift in policy. It may buy 2.5 million tonnes at Rs4,500 per 40 kilogrammes using its own resources, according to the PFMG.

The group said the government’s plans remained unclear, leaving flour millers uncertain about the rules that would govern the next season.

Abdullah and Arshad said the main problem was not deregulation itself but the absence of a consistent and predictable policy framework. They argued that the government was trying to balance pressure from international lenders and donors with domestic political demands, resulting in frequent changes to market rules.

The shifting policies made long-term investment difficult for flour millers, they said, arguing that the government could not encourage private-sector investment while retaining the option of unpredictable intervention.

They urged the government either to regulate the wheat sector through a clear and transparent framework or to allow the market to operate without inconsistent intervention.