KARACHI: While the Punjab government has reduced roti prices in order to provide relief to its people, citizens are awaiting a drop in prices of naan after a sharp reduction in prices of different varieties of flour in Sindh.

A week ago, Punjab Chief Minister Maryam Nawaz had cut the rate of roti and naan, fixing the price of a 100 gram roti at Rs16 and of 120g naan at Rs20.

However, the Sindh government and the Karachi commissioner have yet to take notice of delay in price reduction of various roti varieties.

While millers have slashed the prices of flour No2.5, Maida (super fine flour) and fine flour, tandoor operators appear to be not ready to pass on the benefit of reduction in flour prices to people after a bumper wheat crop and its massive import in the country.

Price of flour No2.5 reduced to Rs96 per kg from Rs122 a kilo

Amid inaction from the government, consumers are paying high prices of chapatti, which is selling at Rs15-20 per piece, Naan at Rs25-30, and Sheermal and Taftaan at Rs80-90.

Speaking to Dawn, most consumers criticise the performance of the commissioner regarding outright profiteering by retailers of fruit, grocery, vegetables, bakery and confectionery items during Ramazan.

They say they are expecting a massive reduction in roti prices after a drop throughout the country.

On the other hand, tandoor owners in various areas warn that if the government tries to enforce any kind of pressure on them to sell roti varieties at reduced rates without any homework on “soaring production cost”, they may shut down their operations in protest.

Flour prices

Millers have slashed the prices of flour No2.5, Maida (super fine flour) and fine flour to Rs96 per kg, Rs123 and Rs124 from Rs122, Rs136 and Rs140 per kg prevailing in February 2024, respectively.

Similarly, the wholesale prices of flour No.2.5 is now Rs97 per kg as against Rs123 per kg while Maida and fine flour are selling at Rs122 instead of Rs133 per kg.

Chairman of Karachi Wholesalers Grocers Association Rauf Ibrahim has expressed surprise as to why the commissioner of Karachi is still reluctant to issue new revised rates of various flour varieties after downward trajectory in their ex-mill and wholesale rates.

He has also said that the commissioner seems unaware that the wheat flour rate has plunged below the commissioner Karachi’s wholesale and retail rates of Rs123 and Rs128 per kg.

The delay in revising down the flour rates is encouraging retailers to easily charge extra rupees from consumers based on higher official rates.

Lack of interest by the price regulator has also given a free hand to bakery and confectionary item makers to continue to charge high rates from consumers on items in which Maida and fine flour are extensively used.

Rauf Ibrahim says market retailers are selling chakki flour at Rs150-160 per kg while its price should come down to Rs135 per kg.

Shopkeepers are still demanding Rs130-150 per kg for flour No.2.5, Maida and fine flour.

The chairman of wholesalers and grocers body also says that low weight tandoori Naan should be sold at Rs15-16 per piece, while higher weight Naan should be available at Rs20 per piece and Chapati price should not exceed Rs12 depending on the weight after the price cut in flour.

It is also seen that most consumers also do not bother about the weight of roti which provides opportunity to tandoors to sell lesser weight roti at higher rate.

Tandoor owners claim that chapati is 80-90 grams while Naan carries a weight of 160-170 grams.

They say that it is true that the price of flour has come down, but the issue of non-availability of subsidised natural gas has forced them to opt for costly liquefied petroleum gas (LPG), whose price is Rs260 per kg.

One can calculate the price of filling a 45kg LPG cylinder at this rate.

They say the price of electricity has more than doubled in the last few years.

A number of tandoor owners are using white paper to wrap roti, which costs Rs300 per kg instead of old newspapers which are cheaper.

They say the price of plastic shopping bag is Rs350-450 per kg depending on quality, while labour charges and sugar rates have also been increased.

Many tandoors are operating on rental spaces whose prices have also touched the roof.

They say that many tandoor operators are using generators in the event of loadshedding, which are run on petrol and diesel whose rates have also gone up.

They have urged the government to first take stock of the situation regarding production cost and other rising expenses in running tandoors before making any ‘unilateral’ decision of announcing any cut in Roti rates.

Wheat price after massive import

A huge import of wheat of around 3.5 million tonnes costing one billion dollars from September-March 2024 by the private sector has brought down wheat rate to Rs8,200-8,300 per 100kg bag from Rs10,800 a few months back thus making a strong case for price cut in flour varieties.

Besides Sindh wheat crop is also available at Rs8,500 per 100kg bag as compared to Rs9,500 earlier in the month.

However, the millers have taken too much time to reduce the rates of flour despite import of cheaper wheat from Ukraine and Russia followed by strong rupee against the dollar in the above period, making landed cost of imported grain lower.

Chairman of Cereal Association of Pakistan Muzammil Chappal said the government’s timely decision to allow import of wheat by the private sector without involving any subsidy had kept wheat prices stable in local markets besides averting any grain shortage.

He said Pakistan had to import wheat due to a low wheat crop of 27 million tonnes in 2023 as against the consumption of 31mn tonnes.

Wheat import was allowed till February 2024 but later on, the government had extended till March 2024 due to some disturbances in the Red and Black Sea, he added.

Published in Dawn, April 22nd, 2024