Flour millers in Pakistan's Sindh province have launched a strong protest against the provincial government's current wheat procurement and subsidy policy. The millers allege that the policy is deeply flawed and unfairly favors private traders over the actual stakeholders in the food supply chain, potentially leading to severe repercussions for both the industry and consumers.
The Core of the Controversy: Subsidies and Market Manipulation
The central grievance of the flour milling industry revolves around the Sindh government's decision to provide a hefty subsidy of Rs 9,500 per tonne on wheat. According to the protesters, this subsidy is being channeled primarily to private traders rather than to the mills that directly produce flour for public consumption. Representatives from various milling associations, including the Karachi Wholesale Grocers Association (KWGA), argue that this approach has allowed traders to monopolize wheat stocks.
They claim traders are now hoarding the subsidized wheat, creating an artificial scarcity in the open market. This, in turn, forces flour mills to purchase wheat at exorbitantly high prices from these traders, negating the very purpose of the government subsidy which was intended to stabilize flour prices for the end consumer. The millers assert that this system is not only inefficient but also encourages corruption and black-market activities.
Warnings of Imminent Crisis and Industry Shutdown
The protest action, which included shutting down mills and staging demonstrations, is a dire warning of an impending crisis. Industry leaders have explicitly stated that if the government does not revise its policy and address their concerns, a complete and indefinite shutdown of flour mills across Sindh is inevitable. Such a shutdown would directly threaten the supply of flour, a staple food, to millions of people in the province and beyond.
Khalid Parvez, a senior official, highlighted the operational nightmare caused by the policy. He pointed out that mills are currently operating at a mere 20% of their capacity due to the unavailability of reasonably priced wheat. The cost of production has skyrocketed, making it financially unsustainable for mills to continue operations. The protesters have presented a clear demand: the government must either provide wheat directly to the mills at the subsidized rate or allow them to purchase it from the government's procurement agency, PASSCO, or from the Punjab government without excessive markups.
Broader Economic and Food Security Implications
The issue transcends an industrial dispute and touches on national food security and economic stability. The Sindh government's procurement target for the current season is 1.4 million tonnes of wheat. The millers' protest underscores a critical failure in the distribution mechanism of this vital crop. By favoring a middleman system, the policy risks inflating consumer prices and creating shortages, disproportionately affecting lower-income families.
The involvement of the Karachi Chamber of Commerce & Industry (KCCI) adds significant weight to the protest. As a major business body, the KCCI's support signals broad-based concern within the commercial community regarding the policy's negative impact on trade and market fairness. The millers' case is built on the argument that a direct linkage between government-held wheat stocks and the flour production units is the only way to ensure transparency, control prices, and safeguard public interest.
The ball is now in the court of the Sindh government. The protesting millers are awaiting a formal response and policy rectification. The coming days are crucial, as the stalemate threatens to disrupt the food supply chain in one of Pakistan's most populous provinces, turning an agricultural subsidy program into a potential catalyst for a major food crisis.
