Country Faces Flour Shortage Amid Indefinite Strike by Mills

Flour Shortage

The All Pakistan Flour Mills Association has initiated a nationwide strike, resulting in the shutdown of flour mills across the country. This action is a protest against the imposition of a withholding tax, which has led to significant disruptions in the supply of flour to major cities.

Association Chairman Asim Raza was stating that the strike would continue until the government meets their demands. Raza highlighted concerns over the newly introduced tax measures, emphasizing that the decision to designate flour mills as withholding agents for tax collection is unacceptable and warrants exemption.

He warned that the 5.5% withholding tax would cause an increase in flour prices, significantly impacting consumers and disrupting the entire supply chain.

Raza illustrated the financial burden imposed by the tax, explaining that a Rs605 tax on a sack of flour priced at Rs11,000 is unreasonable. He stressed that the nationwide strike would persist until their demands are addressed, noting that no formal contact had been made by the government or the Federal Board of Revenue (FBR) to resolve the issue.

The strike has brought the grinding and supply of wheat to a standstill, affecting not only flour availability but also related products such as animal feed. The impact is being felt across various cities:

Lahore:
The flour supply to markets and grocery stores in Lahore has been halted by the mills. The grocery store association has expressed concerns about the limited stock available, which they estimate will last only a week.

They fear a potential shortage if negotiations do not promptly resolve the dispute. The association has appealed to both the government and flour mills to end the strike, expressing hope that the Punjab chief minister will intervene to control the situation.

Karachi:
In Karachi, flour mills have also ceased operations, stopping the grinding of wheat. Aamir Abdullah, the chairman of the Sindh Zone of the Pakistan Flour Mills Association, shared similar sentiments of discontent. He stated that the indefinite strike would continue until the government retracts the tax measures.

The suspension of wheat supply has also impacted the availability of bran for animals. Abdullah warned that the implementation of the FBR tax would increase flour prices by Rs8 per kg and declared that wheat grinding would remain suspended until their demands are met.

Peshawar:
In Peshawar, the flour mills and dealers are united in protest, leading to a major shortage of flour across the city. The flour market in Peshawar is effectively closed, contributing to the growing crisis.

Quetta:
In Quetta, the strike is being led by the mills association’s zonal chairman, Nasir Agha. He emphasized the economic repercussions of the tax on flour traders and mills, warning of an impending economic crisis if the taxes are not reconsidered.

The strike has created a ripple effect, significantly disrupting the flour supply chain and causing widespread concern among consumers and businesses alike. The All Pakistan Flour Mills Association remains steadfast in its stance, insisting that the government address their grievances to prevent further escalation of the crisis.