LAHORE: The Pakistan Flour Mills Association (PFMA) has called upon the federal government to authorize immediate wheat imports to prevent a potential flour shortage by December. This urgent request comes despite recent efforts by the Punjab government to stabilize the market by releasing official wheat stocks.
PFMA Chairman Asim Raza reported on Tuesday that wheat prices in Punjab have climbed to between Rs4,300 and Rs4,500 per maund. This surge is driving up the cost of flour and bread, placing a significant financial strain on consumers.
Raza acknowledged the Punjab government’s decision to release wheat from official reserves, calling it a vital intervention to curb speculative trading and stabilize market prices.
“The release of government wheat will improve market supplies and help eliminate the artificial shortage created by hoarding,” he stated, noting that effective implementation could lead to lower consumer prices for flour and bread.
Millers say Punjab stocks release alone unlikely to do away with volatility
However, Raza warned that relying solely on provincial stocks would be insufficient to guarantee an uninterrupted supply in the coming months.
He urged the federal government to expedite decisions regarding wheat imports to address the projected supply deficit, warning that delays in procurement could trigger a flour crisis by December.
“If import decisions are postponed, the country may once again face shortages and sharp price increases later this year,” he warned.
This warning follows ongoing uncertainty in Pakistan’s wheat market, caused by a significant reduction in public procurement this year. In a departure from previous years, provincial governments conducted limited purchases, leaving the private sector to manage the majority of procurement and storage.
Agricultural experts have noted that while the government’s market-led policy reduces the fiscal burden of maintaining large buffer stocks, it increases market reliance on private inventories, making prices more susceptible to speculation and supply disruptions.
Despite a healthy wheat harvest this year due to favorable weather, analysts suggest that the lack of substantial government buffer stocks could complicate supply management if demand spikes or if private sector stocks are withheld.
Pakistan’s wheat policy has fluctuated between exporting and importing in recent years based on domestic production and policy shifts. Market analysts emphasize that import decisions must be made well in advance, as international procurement, shipping, and inland distribution require several months to execute.
Raza concluded that timely imports, combined with the release of official stocks and rigorous enforcement against hoarding, are essential to maintaining price stability and protecting consumers from winter price surges. He called for a coordinated wheat supply strategy between the federal and provincial governments to prevent the recurrence of past shortages.
