Flour millers call for wheat imports to avoid upcoming food crisis

Flour millers in Pakistan are calling on the government to take urgent action to avert a potential food crisis by importing wheat. Devastating floods have wreaked havoc on farmland in the country, especially in Punjab, the nation’s food basket, resulting in significant damage to grain stocks. Riazullah Khan, Chairman of the Pakistan Flour Mills Association (PFMA) in Punjab, emphasized that Punjab is currently facing a scarcity of wheat, with imports being the only viable solution.

According to Khan, the bumper wheat crop produced by farmers exceeded the demand. However, due to flawed policies, many growers were compelled to utilize their crop as animal feed. This miscalculation led to a surplus of wheat, causing prices to plummet. Farmers, unable to secure fair prices for their produce, sold wheat at extremely low rates, a situation further exploited by feed mills, resulting in a worsened wheat shortage.

Despite calls from millers to halt the supply of wheat to feed mills, no action was taken by the government. Khan highlighted the disparity between human and animal food consumption, indicating that feed mills’ acquisition of cheap wheat significantly exacerbated the wheat shortage. Additionally, restrictions imposed by the government on the transportation of wheat between provinces have further complicated the situation, hampering the millers’ operations.

Khurram Shahzad, Senior Vice-Chairman of PFMA in Punjab, pointed out the lack of accurate documentation on wheat stocks, as many individuals avoid declaring their wheat due to the fear of seizure by the food department. He estimated the wheat shortage to be between 1 to 1.5 million tons and stressed the importance of announcing a fair indicative price to restore farmers’ confidence and avert the necessity of imports.

Shafiq Anjum, Chairman of Faisalabad Flour Mills Association, suggested allowing private entities to import wheat to meet local demands without disrupting prices. However, strategic reserves must be maintained by the government to prevent market manipulation. Anjum cautioned that the absence of a support price for farmers could lead to a further decline in wheat cultivation, as growers may opt for alternative crops.

Khalid Khokhar, President of Pakistan Kissan Ittehad, emphasized the importance of proper regulation in wheat imports to prevent corruption. He suggested a full regulation or deregulation strategy instead of adopting a partial approach. Khokhar proposed evaluating existing wheat stocks before deciding on the necessity of imports, advocating for private sector involvement to minimize the risk of corruption associated with government-managed imports.