After sugar price shock, flour prices rise as wheat costs increase

The recent surge in wheat and flour prices has caused concern among consumers as the cost of these essential food items continues to rise. Wheat prices have increased by Rs300 this week alone, reaching Rs3,100 per maund (40kg), following a steady upward trend over the past month. This rise in wheat prices has led to a corresponding increase in the cost of flour, with a 20kg flour bag now priced at approximately Rs500 more than before.

Critics argue that the sudden deregulation of the wheat market by the provincial government has created a breeding ground for price manipulation. The absence of effective government oversight has allowed wheat hoarders to potentially inflate prices artificially, contributing to the current situation. As a result, concerns have been raised about the lack of control mechanisms in place to prevent market manipulation and ensure fair pricing for consumers.

The Pakistan Flour Mills Association (PFMA) chairman, Asim Raza, has highlighted the challenges the government faces in controlling wheat prices. He has warned that the continuous increase in wheat prices may lead to a corresponding surge in flour prices in the near future. The PFMA is actively investigating the situation to understand the underlying causes and potential implications for the market.

Industry experts suggest that the low wheat reserves in the country are a significant factor contributing to the rising prices. With estimated reserves of over 2.5 million tonnes in Punjab, both in public and private sectors, the current supply may not be enough to meet demand until April 2026. As a result, traders are selling stored wheat in the open market, which has influenced the shift in wheat prices from Rs3,250 to Rs3,100 per 40kg.

Chairman of the Progressive Flour Millers Group (PFMG), Khaliq Arshad, has emphasized the need for proactive measures by federal and provincial governments to supplement wheat stocks to meet domestic demand. He has warned that importing wheat may become necessary given the current situation. The president of PFMG, Majid Abdullah, has observed the market dynamics and noted that the Punjab government’s price cap on wheat and flour is no longer being followed in the market. Demand and supply dynamics, along with market forces, are now dictating prices in the industry.

Despite the rising prices, efforts to reach government officials like Special Assistant to CM, Price Control & Commodities Management Salma Butt, for comment have been unsuccessful. The surge in wheat and flour prices has heightened concerns among consumers and industry stakeholders, who are closely monitoring the situation for potential impacts on the broader food market. It remains to be seen how authorities will respond to the challenges posed by the escalating prices and ensure fair pricing for essential food items in the market.