ISLAMABAD: In a move aimed at supporting the flood-hit farmers, the federal government has approved a new wheat policy, setting a minimum support price (MSP) of Rs3,500 per 40kg, and abolishing restrictions on interprovincial movement of the staple.

The policy comes less than a year after the price system was abolished by the federal government in line with the International Monetary Fund (IMF) demand to deregulate the wheat market. In September this year, after floods wreaked havoc in Punjab, the national food minister said the IMF would be approached for the restoration of the MSP policy to support wheat production.

The decision to restore the minimum price was taken in a meeting chaired by Prime Minister Shehbaz Sharif and attended by the chief ministers of Punjab, Sindh, and Balochistan, a representative from Khyber Pakhtunkhwa, and other stakeholders.

According to a document available with Dawn, the Ministry of National Food Security and Research (MNFSR) proposed ‘Wheat Policy 2025–26: Transitioning to a Market-Based System’. Speaking on the occasion, PM Shehbaz emphasised the importance of the crop in Pakistan’s agro-economy. “Wheat is not only the staple food for the people of Pakistan but also the largest source of income for the country’s farming community,” the PM said.

He added that the government was cognisant of the difficulties faced by farmers and that all-out efforts were being taken to improve their welfare, as they were the backbone of Pakistan’s economy.

“The federal government carried out a detailed consultative process with all stakeholders, including provincial governments, farmers’ associations, industry representatives, and the farming community. Based on these consultations, the government is pleased to announce the National Wheat Policy 2025–26, with the objective of ensuring farmers’ profitability while protecting consumers’ interests,” the policy document said.

Strategic reserves

According to the salient features of the wheat policy, the federal and provincial governments will procure strategic reserves amounting to approximately 6.2 million tonnes from the 2025-26 wheat crop.

It said the procurement will be carried out at an indicative price of Rs3,500 per 40 kg to ensure fair returns to farmers while maintaining market competitiveness. The government also decided that there will be no restrictions on the interprovincial movement of wheat to ensure its availability across Pakistan.

In a bid to regulate the market, the policy document also envisaged the national oversight committee headed by the federal food minister and comprising representatives from all provinces and regions to oversee implementation and coordinate policy actions. The committee will meet weekly and report directly to the prime minister.

A PPP source, meanwhile, told Dawn that the wheat policy matter had also come up during a meeting between PM Shehbaz and PPP chief Bilawal Bhutto-Zardari, who had asked the PM to provide maximum support to the farmers hit by floods.

Separately, media reports suggested that Sindh Agriculture Minister Muhammad Bux Khan Mahar said the IMF conditions had barred the provinces from independently announcing the wheat support price without the federal approval. “As a result, the delay in setting a minimum wheat support price is causing serious financial strain on growers,” he noted as per reports.

The Sindh minister proposed that the Centre fix the wheat support price at a minimum of Rs4,200 per 40kg, arguing that without a fair rate, farmers may abandon wheat cultivation altogether and shift to more profitable crops — a situation he warned could risk future food security.

Published in Dawn, October 20th, 2025