Non-availability of wheat: Punjab faces flour shortage as 256 mills cease operations

Punjab is facing an acute shortage of wheat and flour as almost 256 flour mills in different districts of the province have been forced to shut down operations due to lack of stocks, Well-placed sources told Business Recorder here on Thursday.
Out of 625 flourmills in Punjab, 369 are functioning, while the rest have closed down due to insufficient wheat stocks available to the mills. According to the sources, the total wheat stocks available with the flourmills are about 0.15 million tons and the flourmills are left with just two days' wheat stocks.
"Stocks are declining with each passing day and 59 percent flour mills have been forced to shut down. Within the next 48 hours, the rest of the flour mills would also stop functioning", a flour mill owner, on condition of anonymity, told this scribe.
He added: "It is true that the government usually releases wheat quota at the end of the month of August every year; but this year, the State Bank of Pakistan (SBP) announced that the loans, provided to the private sector, would be subject to minimum cash margin requirement of 25 percent of the value of the wheat stocks. Earlier the loans to the private sector were on 90:10 cash margin basis," he added.
He emphasised that due to minimum 25 percent cash margin, the private sector was discouraged from purchasing wheat. Due to low purchase, the stocks, available with the flourmills, were less than the last year's.
The Federal government had earlier announced to release wheat quota to the mills from September 1, but the flour mill owners are demanding the release of quota by August 15. The price of 20-kilogram flour bag has increased from Rs 420 to 450 within a week due to shortage in the local market.
At utility stores, flour bags are insufficient and there is a perception in the market that they too are involved in hoarding. This added miseries to the people, who are already hit by skyrocketing prices of pulses, rice and vegetables.
The price of 16-kilogram A-category ghee tin is being sold at Rs 2,110, while the rate of B category ghee of 16-kilogram tin is Rs 1,980, whereas C-category 16-kilogram ghee tin is available at Rs 1,870. The price of sugar in the wholesale market is Rs 2,980 per 100-kilogram sack.
However, in the retail market sugar is being sold at Rs 32 to Rs 34 per kilogram. The price of good quality Basmati rice (old) is also showing an upward trend and is selling at Rs 100 to Rs 120 per kilogram, whereas the price of low quality rice ranges from Rs 90 to 100 per kilogram.
Various varieties of gram pulses are being sold at Rs 70 to 80 per kilogram, lentil pulse is available at Rs 120 to Rs 130 per kilogram and masoor pulse is available at Rs 100 to 110 per kilogram. The price of tomatoes has increased from Rs 30 per kilogram to Rs 45 per kilogram within a week, whereas the price of apples has increased from Rs 65 to Rs 85.