The prices of flour and wheat have come down in the domestic market with the decision of provincial governments to release wheat to the flour millers. Wheat price has decreased from Rs 1,560 to Rs 1,450 per 100-kg, while the flour price has reduced from Rs 1,360 to Rs 1,180 per 80-kg.
There has been an acute shortage of wheat as well as flour across the country for the last 4-5 days. Even at Utility Stores, flour was not available due to hoarding and smuggling.
"The flour and the feed millers are involved in hoarding of wheat while a big chunk of this commodity has been smuggled to the neighbouring countries like Afghanistan", sources told Business Recorder. The flour millers were demanding of the government to increase the wheat release quota in order to overcome the shortage and price-hike of flour.
The governments of Punjab and Sindh, in order to overcome the shortage of flour, have announced to increase the wheat quota to the flour mills. The Sindh government has announced to release 0.153 million tonnes, while the wheat quota fixed prior to it was 0.106 million tonnes per month. The Punjab government has decided to extend the quota from 11,000 tonnes to 18,000 tonnes. Last Saturday, the government decided to import one million tonnes of wheat to deal with the shortage of wheat in the domestic market.
According to sources, the government will have to pay subsidy the imported wheat in order to end the disparity between the prices of international and the local market, sources said.
In international market, the prices of the food items have cruised to double digit as compared to Pakistan. India has imported wheat at Rs 900 per 40-kg. This clearly shows that Pakistan will import wheat on expensive rates two times more than the rates in its domestic market. So, if the country imports wheat on high rates, then to end the disparity between the prices of domestic market and the international market, it will have to provide subsidy on that imported wheat.
The government of Punjab has increased the wheat quota to the flour millers. "Now each mill is being provided with 40 bags of wheat instead of 25 bags with an increase in monthly wheat release quota from 11,000 tonnes to 18,000 tonnes. This decision on the part of the Punjab government has helped the flour millers decrease flour prices from Rs 355 per 20-kg to Rs 295 per 20-kg", said a flour miller, adding the flour prices will be reduced further within 2-3 days.
A senior official of the Ministry of Food, Agriculture and Livestock (Minfal) told Business Recorder the provincial governments as directed by the federal government would take strict action against the wheat hoarders under 'Anti-Hoarding Act' and according to this act; the hoarders may have an imprisonment of three years.
The same official said that some feed millers have also stored wheat. "The increasing prices of maize and rice in the local market have made these feed millers store the wheat because now-a-days, wheat is being used in the animal feed as a substitute of rice and maize", he added.