Flour millers in Punjab have strongly rejected the provincial government’s new directive requiring mills to purchase and stock wheat equivalent to 25 percent of their grinding capacity, calling the condition financially unviable and warning that it risks destabilising the industry.
In a press conference on Saturday, Asim Raza Ahmad, group leader of the ruling faction of the Pakistan Flour Mills Association (PFMA), said the new condition violates the mutually agreed terms previously negotiated between the government and the flour milling industry.
“This condition goes against the terms of reference that were mutually agreed upon in earlier joint meetings,” Ahmad said, flanked by millers from across Punjab. “It is not feasible for mills to maintain wheat stocks at that scale due to financial constraints and varied storage capacities.”
He further explained that many small and medium-sized mills operate without formal banking channels or adequate financial reserves to support such large purchases, even if they possess sufficient warehouse space. Ahmad insisted that if the government insists on mandatory stocking, it should provide financial support to mills.
Ahmad alleged that the policy was a deliberate attempt to enable undue interference by government officials in the operations of flour mills for personal gain. He cited the formation of special supervisory teams under the Director General Food, Punjab, which are exerting pressure on millers to comply.
“This is creating unrest within the industry,” he said, warning that heavy-handed enforcement would only escalate tensions.
The PFMA leadership stressed that millers had shown good faith by offering to purchase more than 1.5 million tonnes of wheat directly from farmers this season to help ensure fair prices for growers. However, Ahmad emphasised that mills must retain the flexibility to procure wheat based on their operational needs.
“Forcing mills to maintain such stocks or threatening to suspend licenses will only lead to mill closures,” he warned, pointing out that only 55–60 percent of Punjab’s 1,150 flour mills are currently operational due to persistent financial strain.
He also recalled that several mills, after borrowing from banks to stock wheat last season, suffered heavy losses and bankruptcy — an outcome that could repeat if the new directive is enforced without support mechanisms.
Refuting official claims that the policy was crafted in consultation with the industry, Ahmad called the government’s statements misleading. He urged authorities to reconsider the decision, warning that failure to do so would harm not only the milling sector but also farmers, who have already faced serious setbacks from last season’s market disruptions.
“The government must ensure that policies encourage sustainability, not force shutdowns,” Ahmad said.
