LAHORE: The flour milling industry claims to have reached an agreement with the Punjab government for the provision of at least 100,000 wheat bags of 100kg each per month to sell flour at the officially designated rates.

Mian Iftikhar Mattoo, former chairman of Punjab Flour Mills Association (PFMA), tells Dawn that the provincial government has assured the industry of provision of wheat at Rs3,000 per 40kg so that the mills may sell flour at Rs1,810 per 20kg bag and roti at Rs14 in the open market.

As per the verbal understanding reached between the millers and the government, the latter will provide the wheat from around 2.5 million tonnes of unaccounted grain lying with the hoarders, while two multinational companies that had been allowed to purchase the crop during harvesting season will also release a portion of their stock.

According to him, the Pakistan Agricultural Storage & Services Corporation (Passco) has also been holding around 2.5mt grain for the last couple of years.

Mr Mattoo claims that Punjab will also begin releasing its stock, about 0.8mt, within a couple of days.

Liaquat Ali Khan, another PFMA leader, says the government is pressurising the millers to begin grinding their own stocks notwithstanding the logic that this wheat is traditionally used in the months of January, February and March in the run-up to the new harvest when local markets become dry.

He says millers this season had cautiously invested in wheat because of uncertain government policies as last year it had fixed grain rate at Rs2,900 per 40 kg, while the industry had procured the crop at higher rates.

He suggests that the government should enhance the wheat rate to Rs3,400 per 40kg and of 20 kg flour bag to Rs2,000 as well as importing at least 1.5mt grain for forcing the hoarders to bring their stocks in the market.

On the other hand, Special Assistant to the Chief Minister on Price Control Salma Butt says that the government and flour mills are preparing recommendations to address the wheat and flour crisis. She has welcomed the cooperation of the flour mills and noted that their recommendations are being considered to ensure that flour supply is restored in the Punjab market. Ms Butt claims that the price of wheat and flour will not increase and stability will be achieved.

Published in Dawn, September 10th, 2025