Flour crisis looms as wheat prices rise, mills warn

By Commerce Reporter

LAHORE: The Pakistan Flour Mills Association (PFMA) has warned that rising wheat prices and supply restrictions could lead to a flour shortage if immediate steps are not taken.

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Speaking at a press conference after an emergency meeting of the association’s executive committee, PFMA officials said wheat prices are going up day by day due to reduced arrivals in the open market. As a result, flour prices are also inching up, while flour at government rates is becoming hard to come by.

The association said most flour mills rely on government-issued wheat, which is being supplied to only a limited number of mills. Buying expensive wheat from the open market and selling flour at official prices has become next to impossible.

PFMA leaders also raised concerns over inter-provincial and intra-provincial wheat movement through a permit system, calling it uneven and inconsistent. They urged the government to lift movement restrictions or, until then, issue daily permits of 10,000 tonnes to operational mills on an equal basis.

The association demanded fair wheat distribution to all mills or a first-come, first-served quota system at the district level. It also called for removing restrictions on the production and sale of 15kg fine flour bags across the province.

PFMA said the condition requiring 25% flour supply from private wheat for Rawalpindi and Islamabad should be done away with, as it is not workable. The association asked the government to step in without delay to avoid a possible flour crisis and keep the supply chain running smoothly.