Islamabad: Prime Minister Shehbaz Sharif has set an indicative wheat price of PKR 4500 per 40 kilograms for 2027, seeking to encourage cultivation as farmers decide how much land to plant this season.
Announced on Friday, October 23, the benchmark is PKR 1000 above last year’s PKR 3500, an increase of approximately 28.6 percent. The Prime Minister’s Office attributed the increase to higher production costs, including petroleum prices, and said it was intended to support farmers’ returns and domestic output.
Is this a guaranteed purchase price?
The official announcement uses 'indicative' or 'illustrative' price. This is a reference point for the coming crop, rather than, by itself, a guarantee that every farmer can sell all their wheat to the government at that rate.
A guaranteed purchasing arrangement would need operational details: who will buy, how much they will purchase, which farmers qualify, what quality standards apply and when payments will be made.
The distinction is important because an announced benchmark and the price a farmer actually receives can differ, particularly when growers need to sell quickly after harvest.
Farmers welcome increase but question delivery
Pakistan Kissan Ittehad president Khalid Mahmood Khokhar welcomed the announcement but said practical procurement arrangements were essential. Other farmer representatives sought PKR 5000 per 40 kilograms, arguing that expensive fertiliser, diesel, seed and land rents continued to squeeze returns.
The News reported that farmer organisations also called for coordinated purchasing, financing and storage plans. Their central concern was whether the announced rate would translate into actual sales at that price.
The PKR 5000 demand also featured in an October 1 recommendation by the National Assembly’s food security committee. That recommendation was separate from the prime minister’s subsequently announced benchmark.
Who will purchase the wheat?
Friday’s price announcement did not establish a complete purchasing mechanism for the 2027 crop.
Provincial arrangements have previously differed. In February 2026, the food security ministry reported that KP planned a mix of public and private procurement, while Sindh intended public sector purchasing. Those arrangements concerned the earlier season and should not be assumed to apply unchanged in 2027.
What does it mean for flour prices?
The benchmark equals PKR 112.50 per kilogram of wheat. It is not a notified retail flour price.
Flour prices also reflect milling, transport, storage, market conditions and any subsidy. The announcement therefore does not establish an immediate increase or reduction in the price of flour or roti.
Its immediate purpose is to influence planting decisions for the next harvest. Whether it improves farmers’ incomes will depend on the purchasing system that follows.
