Govt urged to fully deregulate wheat supply chain

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Lahore: As wheat harvest reaches its peak in Pakistan, the flour milling industry is demanding a market -based approach to the purchase and distribution of grain. Supporters of irregularities argue that allowing the wheat supply chain to run freely will lead to most of the performance and equity, eventually benefit farmers, processors and consumers.

Majid Abdullah, president of the Progressive Floor Millers Group, emphasized the importance of turning away from government intervention in wheat markets to unlock the real capacity of the sector. They shared the following insights about the need to improve the system and promote sustainable growth:

Abdullah said, “The real unmanned market can only come to the fore when the government withdraws directly from joining and allowing pricing through supply and demand.” “The current system restricts development.”

Pakistan’s wheat procurement and pricing support system – which was introduced in the late 1950s – has historically ensured the support of small farmers and cheap flour for urban consumers. However, now it has become unstable due to increasing subsidy, which puts a lot of burden on the national treasury. In addition, this system, especially for the allocation of gun bags and the distribution of wheat to the flour mills, has become a threat to the arrest of the system and the elite.

Abdullah highlighted the urgent need for reforms, which, an important source of recent obstacles, described the government’s poorly integrated evacuation as an important source of evacuation from the purchase of wheat. The Punjab government’s sudden elimination of shopping activities, with which the failure to announce the price of the federal government’s minimum assistance has created uncertainty in the stakeholders. Wheat prices dropped from Rs 3,900 to Rs 40 kg from Rs 2,700, which caused significant damage to both farmers and mills.

Abdullah said, “In order to avoid such tremors in the future, wheat trade associated with the principles of free bazaar is essential. The unauthorized environment can unlock the export capacity of wheat and wheat -based products, which can bring about a very important foreign exchange.

Despite these benefits, the private sector is afraid of the lack of clear legislation to protect its role in the wheat economy. The Punjab government has raised fresh concerns over the recent change of food department into the Punjab Price Control and Commodies Management Department (PCCMD). Pricing measures – such as Rs 3,000 per price per price per price in wholesale markets – allegedly caused financial loss to mills, which has damaged their confidence in the government’s commitment to irregularities.

Abdullah called on the government to support the smooth transfer without allowing free trade without any conditions. This includes to improve the private sector’s ability to store and meet the banking needs. He also called for the development of a comprehensive wheat strategy to take advantage of international opportunities.

Abdullah said, “To create a more efficient and equal market, the supply chain must be dissolved.” He added that “the government must adopt a market-based approach and give a clear commitment that the previous system of purchase, storage and distribution will not be restored-even in the form of a political transfer.” Such assurances will provide the private sector with the necessary stability and confidence for investment and development in Pakistan’s wheat industry.