Govt wheat procurement failure may trigger flour crisis: association

FAISALABAD: President of the Faisalabad Chamber of Small Traders and Industries and Chairperson of the Faisalabad Flour Mills Association Chaudhry Shafiq Anjum has strongly criticised the government’s wheat procurement policy. He said that by refusing to purchase wheat from farmers this year, the government had once again abandoned them in their time of need.

Anjum described the government’s procurement measures as a mere “lollipop” for farmers. As the wheat harvest enters the market, prices have continued to decline. In previous years, wheat prices remained stable due to federal and provincial purchases by Pakistan Agriculture Storage and Services Corporation Limited (Passco) and the food department. However, this year, both tiers of government have withdrawn from procurement, causing prices to drop even further than last year.

He added that flour mill owners are also facing financial strain, having previously purchased wheat at Rs3,500 per 40kg in line with government directives, only to incur losses when prices later fell to Rs2,500. At present, wheat is being sold at Rs2,200 per 40kg -- an amount insufficient to cover farmers’ costs.

He warned that due to these flawed policies, nearly 50 per cent of flour mills have already shut down, leaving hundreds of workers unemployed. If this situation continues and farmers opt out of wheat cultivation next season, a serious flour crisis could arise, forcing the country to import costly wheat and further draining foreign exchange reserves.