Good FR.
In addition to above, we had several cases where enterprise customers, who are using SAP or other software, which  was not designed to work properly on devices with touchscreen, so as workaround, till 3rd party code is fixed (which could take a while), customers needed to disable touch events API. 

Would be great to have this controlled via policy, so starting with client part of that here.

Agree that this would be good to control via policy.
This also came up on the Chrome Admin forum.
https://productforums.google.com/forum/#!topic/chrome-admins/8RGdqb_M_oY

We generally don't make policies for something if it's still behind a flag, but I think markchang@ may know more about how ready this is for production.

We cannot use drag and drop on one of the websites that we use at our school.  As a result of making this flags change, it worked.  I cannot see this being feasible to adjust all my teacher and student devices by hand.  This is very needed!

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We need this flag to be enabled by policy as well. Our inventory system has the ability to obtain signatures via a touchscreen and stylus that is broken until this flag is enabled manually. 

We have some specific software that is used with our teachers and students that stopped working with their touchscreens and Smart Interactive Boards. Once this flag is set operation of that software works as it had but it is not practical to think that I can set this flag on everyone of their devices to correct the problem so having the ability to set this as a policy is critical.

Just double checking -- we're talking about #touch-events, correct?

Yes, #touch-events. 

Mustaq, can you take a look at this?

nzolghadr@: I think this is caused by this:
  https://www.chromestatus.com/feature/4764225348042752

Correct. That is related to that. But I disagree with just adding a policy to control that for the enterprises. That flag is going to be removed sometime in the future (currently scheduled to be removed M76 around Jul/Aug) and there will be no way to get that deprecated touch API back. Then that policy will be useless. Folks need to push people to fix their apps not to use a non standard API. I don't mind adding a policy for a temporary fix as long as the communication is clear that it won't solve the issue long term.