Pakistan: Punjab's wheat movement ban sparks flour crisis, provinces protest

Lahore [Pakistan], September 17 (ANI): Punjab's unannounced restrictions on the interprovincial movement of wheat have triggered a severe flour shortage and soaring prices in other provinces, drawing sharp criticism from politicians and millers, Dawn reported.
While Punjab officials denied imposing a formal ban, they admitted to setting up checkpoints to monitor what they termed "unusual" wheat movement. Critics, however, argued that the measures run contrary to the spirit of a deregulated market and violate constitutional rights.
The restrictions have been condemned by Khyber Pakhtunkhwa (KP) and Sindh, which depend heavily on Punjab's wheat supply. The All-Pakistan Flour Mills Association (PFMA) said the policy was unconstitutional, citing Article 151 of the Constitution that guarantees free trade and commerce across the country.
According to Riazullah Khan, chairman of the Punjab Flour Mills Association, checkpoints at the province's exit points were blocking the transport of wheat and flour to other regions. He argued these actions violated the deregulation policy, which promised unrestricted trade and movement of wheat.
As a result, flour prices have skyrocketed in KP, where a 20kg bag is now selling for up to PKR2,800, compared to around PKR1,800 in Punjab. KP Governor Faisal Karim Kundi called the ban a "blatant violation of Article 151" and a "serious breach of national unity."
The KP Assembly also passed a unanimous resolution denouncing the restrictions and cited a 68 per cent surge in flour prices, Dawn reported.
Similar crises were reported in 2020, 2022 and 2023 due to shortages caused by natural disasters or low production from inadequate farm inputs. Punjab traditionally procured and stocked over four million tonnes of wheat each harvest to stabilise prices, but withdrew from this role under international agreements.
Punjab officials defended the restrictions as necessary to ensure food security and prevent hoarding and smuggling. They argued that preventing wheat from being diverted to feed mills or sold to other provinces at inflated rates was vital to protect local consumers.
They also pointed to the National Finance Commission award, under which provinces are responsible for their own food security.
Millers and analysts, however, countered that the policy was counterproductive. They said the restrictions created artificial shortages, destabilised the market and pushed prices higher nationwide.
The Pakistan Institute of Development Economics (PIDE) has consistently urged deregulation, warning that bans only encourage inefficiency and corruption, Dawn reported.
Majid Abdullah, president of the Progressive Flour Millers Group, warned that administrative interference in a supposedly deregulated market would discourage private investment in the wheat sector.
He cautioned that this could force the government to import grain at higher international prices.
"Stability of the market needs a consistent, thorough policy protected by a proper piece of legislation," Abdullah said.
He added that Punjab authorities had earlier encouraged private sector investment, offering bank loans for bulk grain purchases, but a lack of legal protection now made such investment risky.
Farmers have also been affected. Analysts said government restrictions aimed at protecting consumers could deter farmers from sowing wheat in the coming season.
Failure to get fair prices for their crop in the past two years had already made farmers reluctant to continue planting wheat.
Abdullah cautioned that administrative attempts to control prices with the next sowing season approaching would discourage farmers further.
This could lead to reduced domestic production and increased reliance on costly imports.
The federal government, under pressure from provinces facing shortages, is being urged to step in and restore the free movement of wheat to avert a nationwide food crisis, Dawn reported. (ANI)