LAHORE: Without fixing wheat price, the Punjab government has taken measures to control the prices of flour and tandoori roti, a traditional flat bread.
The provincial government on Thursday notified the uniform price for a 20-kg bag of flour at Rs1,810 and roti at Rs14. However, in a surprise move, the Punjab government has not set price for wheat, which could lead to market imbalances due to a poorly thought-out policy. By imposing price caps on flour and roti without regulating wheat prices, there is a significant risk of market distortions and potential wheat shortages. This decision may place additional pressure on traders, processors and millers, as they could face financial losses if they are forced to sell flour at a capped price while having to buy wheat at a higher market price.
The government has banned the use of wheat in feed mills, implementing Section 144 to ensure that wheat is prioritized for human consumption rather than being diverted to animal feed. Furthermore, the government has launched a campaign against hoarding. Special powers have been granted to the Sub-Divisional Officers (SDOs) of the Punjab Emergency Response Authority (PERA) to tackle wheat hoarding and take strict actions against offenders.
Additionally, the Price Control Magistrates have been activated to monitor the market and prevent any price hikes.
Commenting on the steps taken by the Punjab government, central leaders of Pakistan Flour Mills Association and Progressive Flour Millers Group said such regulation of the wheat sector would simply not work. They warned that soon wheat shortage would grip the market due to artificially regulating grain supply chain. How can be flour and bread prices fixed without notifying wheat price, they asked.
Wheat price currently on the rise and crossed Rs4,300 per 40 kg in open market. With such a high price of grain, how can 20 kg flour bag can be sold at Rs1,820, they observed.
They demanded the government allow wheat import so that gap in grain demand and supply could be bridged.
Meanwhile, in complete disregard to provincial government’ decision to fix flour price, whole flour chakki owners in the provincial capital increased the price of one kilogram of flour by Rs10, taking its price from Rs140 to Rs150/kg. The new price has been implemented immediately. According to chakki owners, they are getting one maund of wheat from the open market for Rs4,300, due to which the price of flour has been increased.
