Serious Flour Shortage Crisis Looms Due to Govt’s New Wheat Procurement Policy
The government’s decision to discontinue buying wheat from farmers this season has drawn harsh criticism from Chaudhry Shafiq Anjum, president of the Faisalabad Chamber of Small Traders and Industries.
According to him, the action is equivalent to leaving growers behind when market support is most needed. He criticized the procurement strategy for being ineffectual and symbolic. Prices have been plummeting since the wheat harvest arrived.
In prior years, provincial food departments and government purchases made through the Pakistan Agricultural Storage and Services Corporation (PASSCO) had assisted in stabilizing rates. However, both the federal and provincial governments have chosen not to participate in procurement this year, which has resulted in a further decrease in pricing in comparison to the previous year.
He emphasized that flour mills purchased wheat at Rs. 3,500 per 40 kg in accordance with previous government directives. However, millers are suffering significant losses as a result of the current market prices dropping to Rs. 2,200. Farmers can’t recoup their production expenses either.
The nation may have a severe flour shortage if this approach persists and farmers cut back on wheat production in the upcoming cycle. This could force expensive imports and put further strain on foreign reserves.
