Flour crisis feared: ‘Farmers hesitant for wheat sowing in absence of clear policy’

LAHORE: Flour millers have alleged that despite the start of the wheat sowing season, farmers are hesitant to go for plantation because of recent steps taken by the Punjab government. They feared that in the absence of a clear policy regarding wheat procurement, wheat cultivation would be affected and lead to a flour crisis.

They urged the provincial government to immediately announce a clear policy about wheat procurement so that farmers and the flour milling industry can plan their future. The Industry has an investment of billions of rupees and the apathy of the government towards announcing a policy may hurt it.

These views were observed by the flour millers at a virtual meeting of the Pakistan Flour Mills Association (PFMA) Central Executive Committee with its Central Chairman Badruddin Kakar in the chair. The four provincial chairmen Riazullah Khan from Punjab, Muhammad Naeem Butt Khyber Pakhtunkhwa, and Abdul Junaid Sindh Haji Abdul Wahid Balochistan besides Asim Raza Ahmed former central chairman and Chaudhry Aamir Abdullah also took part in the meeting.

The meeting reviewed the overall situation of wheat and flour across the country and declared it satisfactory. Members participating in Tuesday’s meeting discussed the restrictions imposed on the inter-provincial transportation of wheat by the Punjab government, the prices of wheat in the open market and the establishment of a new department for the purchase and sale of wheat and its powers and impact on the industry across the country.

The members were of the unanimous opinion that the recent steps taken by the Punjab government would have an impact on the industry across the country. This would contribute to the economic killing of farmers who were the backbone of the country's economy and the destruction of the flour mills industry. Despite the abundant wheat crop this year, the Food Department Punjab did not purchase wheat and the milling industry was also kept in the dark.

The flour milling industry bought wheat at high prices to protect farmers from exploitation. The industry obtained loans from banks for purchase, paid interest on it, bore wheat storage expenses and now the government was controlling the price of wheat/flour. A permit system was introduced banning the shipment of wheat from Punjab to other provinces, which led to bribery and extortion. A bribe of Rs 35,000 to 40,000 per vehicle is collected for obtaining permits and passing through checkpoints.

The meeting unanimously demanded that the Punjab Government should announce a clear policy, wheat prices should be left open under an open market mechanism and if the government is interested in selling cheaper flour to the masses, then it should start supplying wheat to mills from government storages. It will create stability in the prices of flour in the market, they observed.

Copyright Business Recorder, 2024