The federal government on Friday reversed its March order that banned the export of flour made from imported wheat. This policy shift comes amid a nationwide strike by millers.Â
Concurrently, a new ban on wheat imports was imposed, addressing concerns raised by farmers in Punjab protesting against the imports despite a bumper crop.
According to a news report, the commerce ministry issued notifications to withdraw the March 29 decision, which had allowed millers to export flour prepared from imported wheat.Â
However, the Pakistan Bureau of Statistics (PBS) did not have any data on such flour exports. The export of wheat and its byproducts from locally produced wheat remains banned.
During the caretaker government’s tenure, local wheat prices declined significantly, primarily due to imports by the private sector, including wheat flour millers. Out of 65 total wheat importers, 17 were flour mills.Â
The government had previously formed a committee to investigate the issue, but it took two months to officially notify the wheat import ban on July 12.
According to PBS data, wheat imports continued through April, with none reported in May. Since July 11, over 1,800 wheat flour mills have gone on strike to protest tax measures, claiming these would increase their burden as they would have to act as tax agents for the Federal Board of Revenue (FBR).Â
Millers would need to collect approximately Rs40 in advance tax from non-filer retailers on a 15kg sack of wheat flour, with over 90% of wheat retailers being non-filers.
The import of 3.61 million tonnes of wheat in the previous fiscal year is of minor concern compared to the need to improve reporting mechanisms for wheat production and consumption in provincial agriculture departments and the federal food ministry.
The Punjab government initially set the wheat acquisition price for millers at Rs4,700 per 40kg. However, millers began purchasing wheat on the open market at lower prices, with some directly importing wheat during the caretaker government.
