- Deregulation of the market sparks increase in wheat prices.
- Wheat climbs to RS3.100, flour bags more expensive.
- Wheat jumps RS1,000, flour bags up RS500.
Lahore: The prices of wheat and flour have risen sharply with wheat climbing with RS300 this week to RS3,100 per MUUND (40 kg).
The hike follows a month long upward trend, with wheat getting almost RS1,000 per day. 40 kg and the price of a 20 kg flour bag increased by approx. RS500.
This recent hike is part of a wider trend as both wheat and flour prices have risen steadily. The steep climbs have caused an alarm of market manipulation and the absence of effective government supervision.
Critics claim that the provincial government’s sudden decision to cease to regulate the wheat market has, without prior notice, created an environment that is conducive to pricing manipulation. This lack of monitoring may have authorized wheat fluids to artificially inflate prices, which further aggravates the situation.
According to Pakistan Flour Mills Association (PFMA) President Asim Raza, the government has been facing challenges in controlling wheat prices. Raza warned that the ongoing increase in wheat prices is likely to trigger a similar increase in flour prices in the near future.
In response to this development, the association actively focuses on the question to better understand the underlying causes and potential consequences for the market.
Nevertheless, according to the market’s insiders, the new situation highlights the complex interaction between government policies, market forces and price dynamics in the wheat and melsy sectors.
Progressive Flour Millers Group (PFMG) President Khaliq Arshad warned that low wheat reserves in the country could be one of the leading reasons for the rising trend in its prices.
According to him, Punjab has estimated reserves of over 2.5 million tonnes, both in the public and private sectors, which is certainly not enough to meet demand until April 2026.
He was of the opinion that the prices of wheat and flour can continue to climb steadily if the authorities could not take corrective measures. The upward trend of grain prices caused merchants to sell stored wheat on the open market. Therefore, the wheat price returned from RS3,250 per year. 40 to RS3.100.
To a question, he emphasized the need to use a proactive approach from the federal and provincial governments to supplement wheat stocks in order to meet domestic demand before the next harvest season. Importing wheat can be inevitable considering the current and evolving situation, he warned.
PFMG President Majid Abdullah noted that stakeholders closely monitor the situation and anticipate potential impacts in the wider food market.
He revealed that the message was issued by the Punjab government to limit the price of wheat to RS2,900 per year. 40 kg and flour for RS1.750 in the retail market, no longer followed on the market. The strong market dynamics have confused many, and these dictate demand and supply as well as prices now, he added.
It is a simple question of demand and supply, he emphasized, adding that if the government wants to maintain the flour price at a certain level, the policy must be revised according to the realities of the earth.
When contacted, special assistant for CM, Price Control & Commodities Management Salma Butt was not available for comments on specific inquiries regarding the increase in wheat and flour prices that have been increasing for about a month.
