The Government has convened a detailed meeting to explain the Public–Private Partnership (PPP) framework under which the private sector will lead the procurement, financing, storage, maintenance, and supply of strategic wheat reserves.
During the meeting, authorities clarified that private partners will not have the right to sell the wheat inventory. The arrangement strictly remains a service-based agreement, under which the government alone will decide when to release wheat, at what price, and to whom.
The government will direct private participants to procure wheat directly from growers in specified districts. Procurement prices will follow a benchmark aligned with import-parity market assessments applicable to the relevant procurement window, ensuring fair and market-based returns for growers.
To safeguard consumers, the government will release strategic wheat stocks in a calibrated manner, strictly on an as-and-when-needed basis. The initial contract term will be for 12 months. This approach is intended to ensure continuous availability, preventing artificial shortages and speculative hoarding, and limiting abnormal price volatility, particularly during winter months and Ramadan.
Profit margins for private partners will be capped and discovered through competitive bidding on a monthly or quarterly basis. The committee recommended that all costs be transparently incorporated into quotations, including: Insurance costs, as inventory risk remains with the purchaser, cost of bag, financial service charge and applicable taxes.
In the meeting it was also reiterated that private warehouses may be used for storing strategic wheat reserves, as PASSCO is undergoing dissolution, and its storage facilities may not remain available until the winding-up process is completed.
Overall, the committee has requested participants to submit their applications by January 14. Only companies that apply by this deadline will be issued procurement licenses. The detailed policy is currently under development and will be shared with private participants once it receives approval.
