Flour mill owners in Khyber Pakhtunkhwa (KP) have rejected the government’s proposed wheat and flour pricing formula, warning that it could push prices higher and deepen problems for the milling industry ahead of Ramadan.
At a press conference on Tuesday, the president of the Flour Mills Association, Naeem Butt, said the government’s proposal did not reflect current market realities. He said wheat prices had reached around Rs13,500 per 100 kilogrammes, while the cost of a 20-kilogramme bag of flour had climbed to about Rs3,000.
Mr Butt warned that if the supply of flour from Punjab was not restored, prices could rise further during Ramadan, a period when demand typically increases. He added that flour mills were already operating under pressure and facing financial losses.
He also criticised the government’s decision to release only 1,500 tonnes of wheat to mills, calling the quantity insufficient. “The price being offered by the provincial government is not acceptable,” he said, adding that the formula could force many mills to shut down. He said the association did not want to mislead consumers and believed the plan was not workable.
Background to the dispute
The disagreement comes amid wider concerns about wheat supply and pricing across the country. In recent months, several national newspapers have reported on wheat availability issues, rising transport costs, and disputes between provinces over inter-provincial movement of grain. Punjab, Pakistan’s largest wheat-producing province, has at times restricted supplies, citing its own stock management needs.
Provincial governments, meanwhile, have been under pressure to keep flour affordable as inflation continues to affect household budgets.
For now, talks between the government and industry representatives are expected to continue. With Ramadan approaching, both sides face growing pressure to reach a compromise that keeps flour available without further burdening consumers or forcing mills out of operation.
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