Flour crisis looms over Pak as mills reduce wheat procurement

Islamabad, May 9 (SocialNews.XYZ) A flour crisis looms over Pakistan with the government locking up the wheat in its coffers amid a shortage in the open market.

Sources told The Express Tribune that flour mills had reduced the procurement of wheat and milling fearing a possible fall in its prices.

There is also a risk of a flour crisis if the gap between supply and demand widens.

However, government sources claimed that there was an abundance of wheat and a new policy would be announced soon. They maintained that there would be no flour crisis.

Despite the increase in flour prices up to 1,300 PKR in Punjab, its availability is not stable.

The sources said that the government had started final consultations on early supply of the wheat in its stock to the flour mills, The Express Tribune said.

The supply of government wheat to the flour mills is likely to start this month instead of June.

The sources said the Prime Minister had decided in principle to reduce the open market flour prices by between 200 PKR and 300 PKR per 20 kg bag.

The government is considering setting the price of a 20 kg flour bag between 1,000-1,100 PKR.

According to sources, the government will bear a subsidy of more than 600 PKR per 20 kg bag for providing cheap flour to the people.

The government has also started consultations on wheat imports to strengthen the country's reserves.

Source: IANS