Market Stabilization

Wheat plays a central role in Pakistan's food economy, both in terms of production and consumption. Because of the importance of wheat, successive governments of Pakistan since Independence have intervened heavily in wheat markets, procuring wheat at administratively set prices to support farmer incomes and subsidizing wheat sales to flour mills or directly to consumers with the objective of stabilizing prices at levels affordable to consumers.

Food Department releases wheat to the flour mills at subsidized rates for supply of quality flour to general public at the reasonable prices when supply of wheat in the open market depletes. The releases of wheat from the provincial reserves exert positive impact to stabilize prices of wheat in the open market.