KARACHI: Huge wheat imports by the private sector have continued to bring down the prices of various flour varieties, but many retailers are not passing on the relief to consumers.

Millers have lowered the rate of flour no. 2.5 to Rs106 per kg from Rs124 in February. The price of 10kg wheat flour bag has been slashed to Rs1,070 from Rs1,250. Maida (super fine flour) and fine flour now sell at Rs124 and Rs126 per kg against Rs138 and Rs141 per kg.

However, retailers continued to charge Rs145-170 per kg for wheat flour no 2.5, fine, maida, and chakki atta.

Pakistan Flour Mills Association (PFMA), Sindh Zone, Chairman Aamir Abdullah claimed that the private sector had imported around 3.2 million tonnes of wheat from Russia and Ukraine since September 2023.

Retailers continue fleecing consumers

He added that lower international wheat prices with rupee appreciation have also reduced the landed cost of imported wheat.

He, however, said the government suspended imports from April 1 after the arrival of new crops.

He said that allowing the private sector to import wheat last year was the best decision of the federal government and shielded the millers from the Sindh government’s blackmailing practices, which have been in vogue for the last three years.

Mr Aamir said efforts were also being made to end the quota system for getting wheat, which would help the flour millers to operate in an open environment.

He said the Sindh government would procure 900,000 tonnes of wheat this year while it procured 0.777m tonnes last year against the target of 1.3m tonnes.

Chaudhry Mohammad Yousuf, former chairman of the PFMA, said there was no hue and cry about a wheat shortage or crisis thanks to the brisk arrival of imported wheat. He said the locally produced wheat, which had recently started arriving in the market, is available at Rs9,500 per 100 kg. The price of imported wheat had plunged to Rs8,900 from Rs10,800 in the open market a few months back.

“Based on the ex-mill price of Rs106 per kg, flour no 2.5 should not sell more than Rs110 per kg in the retail market,” Yousuf said. He said wheat procurement from the growers by the Sindh government had started from March 25 at Rs4,000 per 40 kg.

He said that allowing conditional flour exports made from imported wheat looks a difficult task as further grain imports have been stopped. However, the wheat import rate is now $200-210 per tonne against $280 last year.

Published in Dawn, April 4th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Rushed legislation
Updated 06 Nov, 2024

Rushed legislation

For all its stress on "supremacy of parliament", the ruling coalition has wasted no opportunity to reiterate where its allegiances truly lie.
Jail reform policy
06 Nov, 2024

Jail reform policy

THE state is making a fresh attempt to improve conditions in Pakistan’s penitentiaries by developing a national...
BISP overhaul
06 Nov, 2024

BISP overhaul

IT has emerged that the spouses of over 28,500 Sindh government employees have been illicitly benefiting from BISP....
Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....