Punjab's Aggregator Model Falls Short, Leaving Province Wheat-Shy
The Punjab government's aggregator-based wheat procurement system failed to meet its 1.5 million tonne target, leaving the province short of its goal.
The model, which involved selecting 11 private companies to purchase wheat from farmers, was hindered by unnecessary objections and lending requirements imposed by commercial banks.
These delays allowed market prices to rise above the government's support price of Rs. 3,500 per 40 kilograms, leaving farmers who sold their wheat immediately after harvesting with a lower price of Rs. 3,000 to Rs. 3,100 per 40 kilograms.
Millions of tonnes of wheat were transported from Punjab to Sindh and Khyber Pakhtunkhwa, putting additional pressure on Punjab's wheat market despite the federal government announcing plans to import 1 million tonnes of wheat.