K-P faces flour crisis amid Punjab ban

Dealers warn of fresh price spikes with wheat stocks dwindling fast

PESHAWAR:

Despite the unanimous passage of a resolution in the Khyber-Pakhtunkhwa Assembly and efforts by the provincial government, the ban on the supply of wheat and flour from Punjab to K-P remains in place, raising fears of a worsening flour crisis in the province.

Flour dealers and mill owners have cautioned that the recent dip in prices is temporary, warning that if Punjab's restrictions are not lifted, prices could soar again and a full-fledged crisis may emerge by April, when the new wheat crop becomes available.

Following Punjab's decision to halt supply, flour prices across K-P, including Peshawar, surged sharply. Dealers reported that the price of a 20-kg bag jumped from Rs1,300 to Rs2,500 before settling at the current rate of Rs2,100. Similarly, the price of an 80-kg sack rose from Rs6,200 to Rs10,500, and now stands at Rs9,500. Wheat prices have also climbed to Rs9,500 per 100-kg sack.

Dealers allege that trucks carrying wheat to K-P are being stopped at Attock, with only a few allowed through after paying Rs20,000 per truck. They fear further hikes if Punjab's flour mills, already rejecting the government-fixed rate of Rs1,800 per 20-kg bag, halt grinding operations. Some Punjab mills have reportedly already suspended wheat processing.

Flour mill owners in K-P have expressed alarm, saying they are left with only a week's wheat stock. The province requires 1.2 million metric tons of wheat annually but is currently receiving just 0.1 million tons. Without fresh supplies from Punjab, grinding operations in K-P may also come to a halt.

Provincial Food Minister Syed Zahir acknowledged the rising prices, saying that flour rates have increased by 68 per cent in K-P compared to 40-58 per cent nationwide. He said K-P needs 1.47 million metric tons of wheat, out of which around 3.08 million metric tons are usually sourced from Punjab and other markets. While K-P purchased wheat last year, the province has decided not to buy this year due to a funding requirement of Rs5 billion.

Officials in K-P argue that Punjab's ban on inter-provincial supply of wheat and flour is an informal restriction that violates Article 151 of the Constitution. The provincial government, they added, is in contact with Punjab authorities to seek a resolution.