Food prices in Pakistan are high. So what does the democratically elected government do? They shut down flour mills of course. From the Nation…..

The Punjab government, in a massive crackdown, has sealed 24 flour mills in various districts of the province on charges of wheat hoarding, supply of substandard flour and attempts to create fake shortage of flour in open market, the sources revealed on Saturday.

On the other hand, the flour millers have announced an increase of Rs 85 per 20-kg bag in the flour price (from Rs 365 to Rs 450 per 20-kg) and threatened to shut down the mills across the province against the govt action terming it as ‘cruel and aggressive’.

Latter on in the same article we read…..

The flour millers were of the view that they were unable to sell 20-kg flour bag at Rs 365, the price fixed by the govt, when the price of wheat has shot up to Rs 760 per 40 kg in the open market particularly after an alarming increase in the prices of petroleum products and electricity.

Earlier, the millers had demanded of the govt to immediately issue wheat quota from the available stock to the mills to overcome shortage and to control the flour prices in case the govt did not allow any increase in the flour price.

The millers stopped the floor supply to the markets stating that they had no wheat to grind after both the miller and the govt failed to develop a consensus over the flour price issue.

In other words, the government is demanding that the flour mills sell flour for roughly the same price that they can buy un-ground wheat. The Flour mill owners are trying to explain to the government that they can’t do that and still pay for the electricity necessary to grind the wheat. Even less can they afford to pay wages or other expenses.