LAHORE: The Lahore High Court has set aside a Punjab government’s notification fixing a maximum retail price of wheat, reinforcing that the province must acquire wheat through competitive bidding.
Wheat growers and traders filed petitions before the court challenging the legality of the impugned notification issued by the director general (food)/cane commissioner on Sept 4, 2025.
The notification fixed the maximum retail price of wheat as Rs3,500 per 40kg with immediate effect and until withdrawn or altered for the Punjab province.
It directed that no dealer, wholesale dealer, retail dealer or retailer shall charge or cause to be charged, the maximum retail price of wheat offered for sale in excess of the rate fixed and notified.
LHC says province must acquire wheat through competitive bidding; notification applied to dealers and retailers but excluded farmers
The petitioners claimed that their wheat stocks were their property and should not be sold below the minimum support price (MSP) of Rs3900 per 40kg.
They argued that the impugned notification was unconstitutional, arbitrary, and violates their fundamental rights under the Constitution.
The petitioners asserted that the government cannot deregulate the market and then impose price controls without due process. They sought to have the notification set aside and demand fair compensation for any losses incurred.
The issuance of the impugned notification led to coercive actions against wheat stockholders, compelling them to sell at a fixed price.
The petitioners said the impugned notification was issued when market prices were between Rs3500 to Rs3800 per 40 kg.
They alleged that the government used coercive measures to confiscate wheat stocks and force sales at the fixed price.
They argued that the notification violated their rights and was inconsistent with the previously established wheat policy.
The government law officers defended the impugned notification as a necessary measure to control prices and prevent profiteering.
The government argued that the notification was within its legal authority under the Price Control Act to regulate essential commodities. It claimed that the measures were in the public interest to prevent artificial price hike and ensure wheat availability.
The government said the deregulation policy was intended to stabilize the market and improve transparency.
In his 26-page judgement issued at Bahawalpur bench, Justice Abid Hussain Chattha observed that the director general (Food) issued the impugned notification fixing the maximum retail price of wheat, contradicting the deregulation policy.
The judge noted that the notification applied to dealers and retailers but excluded producers, creating a legal loophole for government actions against farmers and traders.
He said the legal framework governing wheat pricing and regulation is inconsistent with the deregulation policy.
Justice Chattha ruled that the Price Control Act provides a comprehensive regulatory framework but overlaps with the deregulation measures, leading to confusion.
The judge set aside the impugned notification, affirming the deregulation policy’s protections for wheat stockholders.
The judge declared the impugned notification as unconstitutional, emphasizing that the government cannot fix maximum retail prices under the deregulation plan.
The judge highlighted the need for the government to provide subsidies from its own resources rather than through coercive measures against private stockholders.
The judge declared that during the subsistence and continuation of deregulation plan pursuant to the policy notification, the Punjab government or its functionaries had no lawful authority to fix the maximum retail price of wheat.
The judge maintained that the government is only entitled to purchase wheat through an open competitive bidding under the Punjab Procurement Rules and the owners of declared wheat stocks shall remain protected against anti-hoarding actions.
Published in Dawn, October 30th, 2025
