Pakistan: Punjab bans use of wheat in feed mills to avert flour shortage

The Punjab government has imposed an immediate ban on the use of wheat in feed mills across the province, in a decisive step to safeguard flour supplies for human consumption.

The provincial Home Department issued a notification on Friday, September 5, invoking Section 144 to curb the diversion of wheat into poultry feed production. The order, which takes effect immediately, will remain in place for 30 days until October 3.

“Wheat will now only be used in flour mills for the production of flour,” the notification stated, underscoring the government’s intent to secure adequate supplies of wheat, flour, and bread for the public.

According to a spokesperson for the department, feed mills in Punjab currently hold around 104,184 metric tons of wheat. Reports from the Secretary of Price Control revealed that these stocks were being earmarked for poultry feed, prompting the government to step in.

The intervention comes amid mounting pressure from the flour milling industry over soaring wheat and flour prices.  Earlier, the Pakistan Flour Mills Association (PFMA) warned of further hikes unless the government facilitates wheat imports.

PFMA Chairman Junaid Aziz noted that local prices have escalated sharply over the past month. He highlighted that while wheat is available at cheaper rates in the global market, it remains expensive in Pakistan, creating pressure on local flour prices.

From August 1 to September 1, wheat prices jumped by Rs35 per kilogram (US$0.13), climbing from Rs62 (US$0.23) to Rs97 (US$0.35) per kg.

Flour prices followed suit, with Grade-2.5 flour rising from Rs76 (US$0.27) to Rs99 (US$0.36) per kg, and fine flour from Rs79 (US$0.28) to Rs108 (US$0.39) per kg.

Aziz highlighted the disparity between domestic and global markets, where wheat is available at Rs85 per kg (US$0.29) internationally compared with Rs96 per kg (US$0.34) locally.

“If the Sindh government releases its wheat stocks next week, prices may ease slightly, but to stabilize supply and control inflation, Pakistan will need to import at least 1.5 million tonnes of wheat this year,” he cautioned.

The Punjab government’s restrictions aim to prioritize household food security at a time when rising commodity prices are straining consumers nationwide.

Tags: Feed, flour, stocks, ban, Punjab, consumption, feed mills, Poultry, wheat