LAHORE: A group of flour millers has demanded the government frame a comprehensive wheat policy before withdrawing its role from the grain business.

In a letter recently sent to the National Food Security and Research Ministry, Progressive Flour Millers Group president Majid Abdullah has said that doing away with wheat subsidy is a welcome step as it led to a mushroom growth in the flour milling industry. Elimination of the subsidy wiped out 50 percent ‘inefficient’ flour mills and introduced a healthy competition among efficient mills, he added.

Terming the subsidy a menace, he said the wheat quota was the root cause of corruption among the food department officials.

However, he supported a targeted subsidy through the Benazir Income Support Programme (Bisp) for the low-income segments of society.

Say wheat quota promotes corruption in food dept

Referring to no procurement of grain this year by the Punjab government leading to crashing of the crop market, Mr Abdullah says if the provincial government has finally decided to pull out of the wheat business, it should first give a comprehensive wheat policy.

As part of the policy, he suggested, the government should do away with the minimum support price system, leaving the prices to dynamics of supply and demand forces.

Before abolition of the food departments, the flour milling industry should be strengthened, enabling it to take up the department’s role by building its storage capacity, he suggests, demanding zero duty on import of silos for grain.

He says the flour millers should also be facilitated by banks to assume the new role.

Export of wheat and its products must be allowed throughout the year, so that the industry has a window to do business internationally, he adds.

Published in Dawn, June 4th, 2024