- The market deregulation market increases in wheat prices.
- Wheat rises to RS3,100, more expensive flour bags.
- The wheat jumps RS1,000, flour bags up to RS500.
LAHORE: Wheat and flour prices have increased abruptly, with an escalation of wheat in RS300 this week at RS3,100 per maund (40 kg).
The walk follows an ascending trend of one month, during which the wheat won almost RS1,000 for 40 kg and the price of a 20 kg flour bag increased by approximately RS500.
This recent walk is part of a broader trend, since wheat and flour prices have constantly increased. The steep increases have increased the alarm by market manipulation and the absence of effective government supervision.
Critics affirm that the abrupt decision of the provincial government to stop regulating the wheat market without prior notice has created an environment conducive to price manipulation. This lack of supervision may have trained wheat hoarders to artificially inflate prices, exacerbating the situation further.
According to the president of the Muelas de las Floures Association of Pakistan (PFMA) As Race, the Government has faced challenges in the control of wheat prices. Race warned that the continuous increase in wheat prices will probably trigger a corresponding increase in flour prices in the near future.
In response to these developments, the association is actively focusing on the subject to better understand the underlying causes and the possible implications for the market.
However, the emerging situation, according to market experts, highlights the complex interaction between government policies, market forces and prices dynamics in wheat and flour sectors.
The president of the Millers of Flour Progressive (PFMG), Khaliq Arshad, warned that low wheat reserves in the country could be one of the main reasons for the growing trend in their prices.
According to him, Punjab has estimated reservations of more than 2.5 million tons, both in the public and private sector, which are definitely not enough to meet demand until April 2026.
It was of the opinion that wheat and flour prices can continue to rise constantly if the authorities could not take corrective measures. The upward trend of grain prices led merchants to sell walked wheat in the open market. That is why the price of wheat was invested from RS3,250 for 40 to RS3,100.
To a question, he emphasized the need to adopt a proactive approach by federal and provincial governments to complement wheat actions in order to meet domestic demand before the start of the next harvest season. Wheat importation can be inevitable given the present and evolving situation, he warned.
The president of PFMG, Majid Abdullah, observed that interested parties are closely monitoring the situation, anticipating potential impacts on the wider food market.
He revealed that the notification issued by the Punjab government on limiting the price of wheat to RS2,900 for 40 kg and flour at RS1,750 in the retail market no longer follows in the market. The strong market dynamic has baffled many, and these are dictating demand and supply, as well as prices now on, he added.
It is a simple matter of demand and supply, he emphasized, and added that if the government wants to maintain the price of flour at a certain level, the policy must be reviewed according to terrestrial realities.
When the special cm wizard was contacted, price control and basic products management, Salma Butt, was not available to comment on specific consultations about the increase in wheat and flour prices that have increased for approximately one month.
