The Punjab government has announced its Wheat Policy 2026, fixing the wheat procurement price at Rs3,500 per maund and unveiling a new mechanism to build strategic reserves in partnership with the private sector.

According to an official notification, the provincial government will procure wheat through selected stakeholders instead of direct large-scale government buying. This move aims to balance farmer interests with market stability while reducing financial pressure on the public sector.

Under the policy, Punjab plans to purchase up to 2.5 million metric tons of wheat for strategic storage. The government has aligned the purchase price with the open market rate of 2025 to ensure farmers receive fair returns and avoid sudden price shocks in the market.

Banks will play a key role in managing financing for the strategic wheat reserves. The Punjab government will bear 70 percent of the financing cost, while selected stakeholders will be provided government-owned warehouses free of charge to store wheat.

To prevent market manipulation, the policy places limits on aggregators. Stakeholders will not be allowed to purchase less than 0.5 percent or more than 20 percent of the total wheat volume under the scheme.

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Officials said farmers will receive full and immediate payment of Rs3,500 per maund at the point of sale, a step aimed at easing liquidity issues faced by growers during harvest season.

The government stated that the new wheat policy is designed to protect farmers’ incomes, reduce market distortions, ensure transparent procurement, and strengthen food security across Punjab ahead of future demand pressures.