Punjab's Wheat Restrictions Spark Nationwide Flour Crisis

Punjab's covert restrictions on interprovincial wheat movement have ignited a severe flour shortage, leading to skyrocketing prices in Pakistan's provinces. Politicians and millers have voiced strong opposition, with Dawn reporting potential violations of free trade rights despite Punjab's denial of a formal ban.

Criticism is mounting from Khyber Pakhtunkhwa (KP) and Sindh, heavily dependent on Punjab's wheat. The All-Pakistan Flour Mills Association (PFMA) condemned the policy as unconstitutional, citing Article 151, which ensures free nationwide trade. The presence of Punjab checkpoints impedes wheat transport, allegedly breaching deregulation policies.

Consequently, KP flour prices have surged dramatically, with a 20kg bag now costing up to PKR2,800 compared to PKR1,800 in Punjab. KP leadership and assembly have denounced these restrictions, highlighting a worsening national unity breach and 68% flour price increase, aligning with previous crises linked to natural disasters.

Punjab historically relied on stockpiling wheat to stabilize prices but has shifted focus due to international commitments. The province defends the move as vital for food security, aiming to block wheat diversion to feed mills and prevent inflated sales to other provinces. However, critics argue it exacerbates artificial shortages.

The Pakistan Institute of Development Economics (PIDE) discourages such bans, warning of inefficiency and corruption. Majid Abdullah, leading the Progressive Flour Millers Group, highlights discouraged private investment and potential costly grain imports.

Farmers face uncertainty as well. Government restrictions, intended for consumer protection, may discourage wheat sowing due to low past crop prices. With reduced domestic production looming, analysts and federal pressure mount to restore wheat's free movement to fend off a national food crisis.