LAHORE: The Pakistan Flour Mills Association has warned that the wheat and flour crisis could worsen if the government does not take immediate steps. Addressing a press conference in Lahore, Chairman Riazullah Khan and former Chairman Asim Mahmood said that most of the flour mills in Punjab are currently facing losses of Rs 60 million to Rs 70 million.
Riazullah Khan said that although the wheat crop was good this year, farmers were not given a fair price. Flour mills purchased wheat as per their requirement at an average of Rs 4,200 per maund, while the government purchased it at only Rs 2,900 per 40 kg. According to him, the feed industry has lifted 1.6 million tonnes of wheat in the last few months, which has increased the pressure on the market.
Former Chairman Asim Mahmood said that Punjab has already created a shortfall of 1.5 million metric tonnes. According to him, if free trade is not allowed immediately, the situation may get out of hand.
He further said that the decision of 40 percent penalty by the Commissioner Rawalpindi should be withdrawn. Otherwise, the Flour Mills Association will be forced to take legal action or close the mills after a week.
Flour Mills leaders made it clear that in the current situation, it is not possible to buy wheat at Rs 3400 per maund and sell flour at Rs 1800. They said that only if the government provides a support price of Rs 3300 to Rs 3500 per maund to the farmer, then only will there be encouragement for the next crop.
According to them, the availability of wheat was better last year, but this time the situation is completely different and if timely decisions are not taken, the crisis can be serious.
