Millers seek direct wheat imports

With Pakistan facing a wheat shortfall, the Pakistan Flour Mills Association (PFMA) has urged the federal government to allow flour mills to directly import wheat, saying the move would ensure cheaper flour for consumers, promote competition and avoid corruption risks linked to state-run imports. PFMA argued that an open-market mechanism would ensure cheaper flour for consumers while reducing the risk of corruption.

Speaking to The Express Tribune, PFMA Sindh Chairman Abdul Junaid Aziz said the federal government had decided to initially import one million tonnes of wheat through the Trading Corporation of Pakistan (TCP). However, he argued that imports and distribution through the TCP, coupled with subsidies, could increase the risk of corruption.

To address these concerns and promote healthy competition, he urged the government to immediately permit flour mills to import wheat directly under a deregulated, open-market mechanism.

Aziz said the association had warned the government and relevant institutions two months ago that domestic wheat production was expected to fall, but the warning went unheeded. Had policymakers acted at the time, he said, Pakistan could have imported cheaper wheat from Russia and Ukraine during the ceasefire period via the Strait of Hormuz. Instead, the country would now have to rely on costlier imports from Australia, Romania and Canada.

He estimated that Pakistan would need to import between three million and 3.5 million tonnes of wheat to meet domestic demand.