Introduction of the Study


Wheat is the most important staple food in Pakistan. It is considered a necessary part of every meal like bread in breakfast and ‘chapattis’ for lunch and dinner. On the other hand, Pakistan has been one of the top ten wheat-producing countries in the world. The ranking of Pakistan in wheat producing countries was 10th in the world in 2008. However, it increased to the number 6th when the government enhanced the wheat support price by 52%, from Rs.625/- to Rs.950/- per 40 k.g.

The government has been maintaining the support price of Rs.950/- per 40 kg for the last couple of years and growers are cultivating more wheat for higher price margins. The farmers are expecting another bumper crop this year following last year floods in the Indus Basin. There is a possibility that farmers can supply more wheat than the previous years.


While increasing the wheat support price, the Prime Minister of Pakistan announced the following objectives: (Nation 2008)

1-      To increase the wheat production

2-      To benefit the small farmers owning less than 25 acres of land

As per District Government Muzaffargarh website, the objectives of the government are: (Muzaffargarh n.d.)

  • Price sustainability in the market
  • Curtail the role of middleman
  • Maintain strategic stocks
  • Provide better service to the farmers

I have chosen Punjab as the subject for this paper for following reasons:

a-      The province of Punjab is growing wheat, yielding 72% of the total supply.

b-      I have experience of working in rural districts of Punjab.

c-      I have been part of wheat procurement campaigns in Punjab (2009 & 2010)

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