Wheat crisis: Licenses of 28 mills suspended, LHC told

LAHORE: At least 204 mills have been found involved in the wheat shortage responsible for the wheat crisis in the country, according to a report submitted to the Lahore High Court on Friday, according to local media news.

The report mentioned that since December last year, the licenses of 28 mills have been suspended, while a fine of Rs5.62 million has been imposed on the mills in relation to the wheat crisis. 

The department’s report showed that 14 of the mills were located in the Lahore division, while eight were in Rawalpindi. The report alleged that most of the people found involved hail from strong political backgrounds.

Among the other factors, the food department’s report said that due to the devaluation of rupee,  the demand from local traders increased to overcome the shortage.

Last week, the Federal Investigation Agency was tasked to probe the shortage of wheat across the country. The Punjab government had launched a province-wide crackdown on wheat hoarders and profiteers. 

The provincial government had decided to take strict action against those involved in creating artificial shortage of flour. As the crisis intensified, Prime Minister Imran Khan took notice of the surge in wheat prices too. 

In January, the price of the flour increased by five rupees due to a shortage of wheat supply. “Fine flour is available for Rs62/kg while the price of mill flour increased by five to six rupees and is being sold between Rs 62/kg to Rs70/kg,” the president of the flour retailers association had earlier said.

In Karachi, a sack of flour was sold for Rs500. In some parts of the city, a bag of 10kg flour, which cost Rs450 before the crisis, was sold for Rs700 after an increase of Rs250. In Lahore, the Punjab Flour Mill Association increased the price of flour by Rs6 per kg.