Millers want govt to allow wheat imports

New support price has made cost of business higher.

LAHORE: Flour millers have demanded resumption of wheat imports from abroad, as the recently announced support price revision will ruin the local mills.

Earlier, the government increased the wheat support price to Rs1,200 per 40 kilogramme (kg) from Rs1,050,  which is seen as a move to appease the rural voters, basically the agri lobby. However, the increase in support price is not beneficial to the end-consumer, for whom wheat becomes expensive, or millers, for whom buying wheat from farmers also becomes costlier.

It is the fifth increase in government’s tenure, which has caused a net increase of Rs825 per 40 kg or 182% since 2008. When the Pakistan Peoples Party-led coalition government came into power, the wheat support price was Rs425 per 40 kg.

The local industry fears that once Pakistan opens its door to India, under the trade liberalisation programme, India will flood the Pakistani market with cheap wheat and flour, and put the local industry out of business.



Speaking at a press conference, Pakistan Flour Mills Association (PFMA) Punjab Chairman Chaudhary Abdul Jabbar said that flour mills were not in a position to arrange extra Rs21 billion to service the new rate and the hike, when implemented, will increase the price of a 20 kg flour bag to Rs750.

“In past three years, the support price has increased manifold, rising price of inputs have also hit us, whereas the low wheat prices in international markets have closed the doors for Pakistani wheat exports. Imports to Afghanistan will be finished due to the new price mechanism,” he said.

Published in The Express Tribune, November 30^th, 2012.