Lack of uniform wheat price takes toll on masses

LAHORE: Delay in federal policy guidelines on uniform wheat price across Pakistan has been aggravating market distortions and decreasing affordability for the masses.

Government started formal release of wheat from warehouses in Punjab at an issue price of Rs1,950/40kg, which was helping reduce flour prices by Rs7/kg. However, consumers in the rest of the country continue to suffer as they have to buy flour at a much higher price.

Prices are particularly high in Karachi and the province of Balochistan.

Finance Minister Shaukat Tarin on September 14, 2021 announced uniform rate of Rs1,950/40kg for release to mills. The finance minister had claimed that wheat flour prices would drop over the next few days, but that did not happen.

On September 29, 2021, the finance minister reiterated the firm commitment of the government to ensure smooth supply of wheat flour across the country at government specified price. For the purpose, he directed the provincial chief secretaries of Sindh, Balochistan and Khyber Pakhtunkhwa to expedite the process for releasing wheat at the price determined by the government after fulfilling requisite formalities.

Till Thursday, Sindh government remained tight-lipped over policy guidelines for provision of cheap flour to masses. There has been no announcement by Sindh government about issuance of wheat to flour mills.

Pakistan Flour Mills Association (PFMA) Chairman Haji Yousuf said flour prices were high in Karachi, touching Rs66-67/kg as wheat price hovered around Rs2,440/40 kg. “As soon as wheat issuance started by Sindh province, the price of flour would be reduced significantly.”

To a question, he said the PFMA would not demand Sindh government to release wheat. The government knew about the exorbitant price of flour, a stable food for the consumers, and should thus take the decision on its own, he added.

However, Yousuf, who was immediate past chairman of PFMA Sindh Chapter, said, “Sindh is required to replenish its stock to 1.4-1.5 million tonnes from present 1.2 million tonnes to meet flour requirements till March 2022.”

To another question, he made it clear that the private sector would not import wheat, as it was not feasible for them anymore keeping in view bullish trend in the international commodity market. The provincial or federal government should “bridge the gap between wheat demand and supply”, he said.

He specifically mentioned the upsurge in prices of flour in Balochistan, where, according to him, consumers might continue to be at the receiving due to the provincial government’s inability to subsidise wheat.

It would be sheer injustice with the people of Balochistan, most of whom were already suffering from abject poverty. He asked the federal government to support Balochistan government financially in order to provide subsidised wheat flour to the masses.

Price of flour in Khyber Pakhtunkhwa was generally on the lower side, but was still relatively expensive if compared with rates being followed in Punjab.

Price of chakki atta was still high in Punjab, touching the mark of Rs80/kg in Lahore, since wheat released by the Food Department has yet not been aligned with the wheat release policy 2021-22.

Abdul Rehman, central leader of Lahore Atta Chakki Owners Association said, “We are in constant contact with the officials of Food Department, but to no avail.” He expressed the hope that the provincial Food Department would soon start releasing wheat to chakkis, which would help reduce the price of flour.