Key Takeaways
- The Pakistan Flour Mills Association (PFMA) has called for immediate wheat imports.
- Wheat prices have risen sharply, leading to increased flour and bread costs.
- PFMA warns of potential shortages by December if import decisions are delayed.
The Pakistan Flour Mills Association (PFMA) has urged the federal government to expedite the approval for wheat imports to prevent a potential winter flour shortage, according to a statement issued on Tuesday. PFMA Chairman Asim Raza highlighted that current wheat prices in Punjab are between Rs4,300 and Rs4,500 per maund, significantly higher than usual, which is driving up the cost of flour and bread.
Raza welcomed the Punjab government’s decision to release official wheat stocks, stating it would help stabilise market prices. However, he cautioned that this measure alone might not be sufficient to ensure uninterrupted supplies during the coming months. He emphasized the need for federal import decisions to bridge any expected supply gaps, warning of a possible crisis by December if procurement is delayed.
The PFMA’s call comes amid continued uncertainty in Pakistan’s wheat market following reduced public procurement this year. Unlike previous years, provincial governments made limited purchases, leaving private sector dominance and making prices more susceptible to speculation and supply disruptions. Agriculture experts have warned that the absence of significant government buffer stocks could lead to supply management challenges later in the marketing season.
Pakistan has alternated between exporting and importing wheat over recent years based on domestic production levels and policy decisions. Market watchers stress the importance of timely import decisions, as international procurement, shipping, and inland distribution require several months. Raza urged both federal and provincial governments to coordinate a comprehensive wheat supply strategy to avoid past shortages.
The PFMA’s warning is particularly pertinent given the recent reduction in public procurement. Analysts note that while the government’s market-led policy has reduced fiscal pressure from carrying large wheat stocks, it has also increased reliance on private inventories, making prices more vulnerable to fluctuations and disruptions.
Raza highlighted the need for a coordinated approach between federal and provincial governments to ensure price stability and protect consumers from another potential surge in flour prices during winter months. He called for timely imports coupled with the release of official stocks and strict action against hoarding.
The release of government wheat will improve market supplies and help eliminate the artificial shortage created by hoarding.
Asim Raza, PFMA Chairman
If import decisions are postponed, the country may once again face shortages and sharp price increases later this year.
Asim Raza, PFMA Chairman
