Punjab tightens wheat-to-flour supply chain

LAHORE: The provincial government has further tightened controls over the entire wheat-to-flour supply chain — from who can purchase government wheat to how it is priced, reported, and inspected.

The new policy aims to establish a transparent and equitable system that curbs hoarding, stabilises prices, and ensures a consistent supply of wheat and flour for both mills and consumers. To implement this framework, the provincial government has enacted the Punjab Wheat Release and Flour Distribution Order, 2025, through its Price Control and Commodities Management Department.

Issued under the Punjab Foodstuffs (Control) Act, 1958, the Order took effect immediately upon notification. Its core objective is to regulate the release of wheat from government stocks to flour mills and atta chakkies, ensuring a structured and closely monitored distribution of wheat flour to the general public.

The Order defines a detailed framework for wheat release, mandating that only approved and operational flour mills, along with licensed or registered atta chakkies, are eligible to obtain wheat. It also requires wheat to be released on a pre-deposit or advance payment basis, verified by the District Food Controller (DFC).

According to the Order, the release price of wheat and the sale price of wheat flour will be announced separately by the Secretary of the Price Control and Commodities Management Department after approval from the Punjab government. This means that official notifications will determine both prices at a later stage.

The release of wheat will follow a strict priority system, focusing first on existing indigenous wheat stocks from the 2023–24 scheme. The priority for using these stocks has been determined in the following order: stocks stored in the open at private places, stocks stored in the open at government places, stocks stored in private hired covered accommodation, and stocks stored in government covered accommodation.

Flour mills are required to maintain an extraction ratio of 70:18:12 (flour, fine, bran) when using public wheat stocks. They must also upload daily data on wheat procurement, grinding, and sales to the Food Department’s Inventory Management System (FDIMS). To maintain regional balance, the Order authorizes the transfer of wheat from surplus to deficit areas, and mills located in deficit districts must lift 25 percent of their quota from other regions as directed.