KARACHI, April 15: Fearing that another wheat flour crisis may hit the country, an increasing number of consumers make a beeline for utility stores as the difference between the market rate of the essential commodity and its subsidised price continues to rise.
Currently, the price difference stands at Rs100 on a 10-kg bag of wheat flour. The Utility Stores Corporation offers a 10-kg bag of wheat flour for Rs130, while it is being sold at between Rs230 and Rs240 in the market. A 10kg bag, a few months back, in the market was priced at between Rs150 and Rs160.
Keeping in view the ever-lengthening queues of consumers, the USC is providing 25,000 to 30,000 10-kg bags at the 145 regular and franchise stores in Karachi. However, the way the flour price gone through the roof, the USC is set to face extra rush of consumers and it may have arrange 40,000-50,000 bags at these stores. The USC faced a flour crisis followed by a law and order situation a few months back.
The corporation is meeting the demand with a monthly quota of 100,000 tons Russian wheat being provided by the Trading Corporation of Corporation (TCP).
Due to a big price difference between flour rates in the market and utility stores, many ‘fake’ customers are seen buying as many bags as they lay their hands on. They are working in tandem with some hoarders and shopkeepers. The rising cost of living has perhaps forced many people from the lower-middle economic class to indulge in such activities.
A random visit to the Gizri utility store showed that a strange buying frenzy had gripped customers. When asked, many customers said they had come from different places. In reply to a question, an old man tried to justify excess buying, stating that he lived in a joint family and had to feed all 12 members.
Some USC officials say that they can easily identify people coming daily at the stores, but they are powerless to control duplication in purchases as there is no scheme to check it. They believe that some 10-15 per cent people standing in a queue are definitely ‘fake’ buyers as their main aim is to make some profit by selling flour to shopkeepers and hotel owners.
But market sources say that there are over 40 per cent people standing in lines who are involved in what is described as forward selling. In the absence of any mechanism to control the racket of multiple purchases, the ultimate losers are genuine poor customers.
The officials of the utility stores feel that they are under pressure as some political elements, officials in the government departments and youths having political affiliations demand wheat flour in large quantities. The officials sometimes have to face problems when some political activists armed with weapons arrive at the stores and create problems for the store officials as well as customers.
The USC manager for Sindh and Balochistan Zone, Masood Alam Niazi, said that the wheat supply from the TCP so far had been under control and the USC was having enough stocks to meet the demand at present.
However, the situation outside the stores would go out of control in case the difference in flour prices in the market and utility stores increased further, he added.
Security concerns
He said the utility stores’ staff felt much more insecure after the rising incidents of robbery and law and order situation outside the stores. Some 10 days back, a robbery took place at a Korangi franchise. Officials were reportedly beaten up at various stores by some enraged people and miscreants.
Police and Rangers high-ups had been approached several times for providing security at the stores, he said, and regretted that the law-enforcement agencies had unfortunately offered excuses citing a staff shortage.
Mr Niazi said it was difficult for two to three officials at utility stores to handle such a huge load of customers and control the situation in case of a breakdown of law and order.
Other sought-after items
Besides flour, there is a rising demand for ghee, cooking oil and gram pulse. The sought-after items also include rice and some varieties of pulses after a rise in their prices in the open market.
At utility stores, a one-kilo ghee and cooking oil pouch is being sold for Rs67, while it’s market price is between Rs145 and Rs155. Gram pulse is being sold at Rs29 a kilo, while it sells at a price of Rs48-50 in the market. Moong is being sold at Rs42 a kilo at the stores as compared to Rs55 a kilo in the market. One kilogram of Masur and Maash are available at the utility stores for Rs83 and Rs57, respectively, while they are being sold for Rs85 and Rs60 in the market. White gram is being retailed at Rs54 at the utility stores as compared to its market price of Rs75. Super Kernal Basmati and Super Tota Broken rice are being sold at Rs60 and Rs33 a kilo at these stores, while they are available at Rs90 and Rs48 in the open market.
Mr Niazi said each utility store was being supplied 800 to 1,000 one-kilo pouches of ghee and cooking oil daily as compared to 400 to 500 pouches two months ago.
Rising prices
Pressure on consumers is intensifying as the 10-kg atta bag (No 2.5) has become costlier from last week’s Rs200-210 to Rs230-240 this week.
However, the retail markets have yet to show any sign of flour shortage.
Many retailers were seen warning their customers of a further price hike in the coming days. They said wheat prices in the open market had surged to Rs1,775 from Rs1,750 last week and Rs1,650-1,700 three weeks back. They said they were purchasing a 10kg bag of Ashrafi atta for Rs230 from mills and selling fine atta for Rs24 to Rs25 a kilo and Chakki atta for Rs23-24 a kilo.
A member of the Pakistan Flour Mills Association said the government had increased the issue price of 100-kg wheat bag to the millers from Rs1,215 to Rs1,621. Besides, he said, a couple of weeks back each flour mill was getting 400 bags of wheat daily, which dropped to 200-250 bags last week, while the quantity further reduced to 100 bags on Tuesday.
While the mills were making flour by procuring 90 per cent of wheat from the open market at a price of Rs1,600 for a 80kg bag, the retailers should sell atta at Rs21.50 a kilo, the millers said.
Dear visitor, the comments section is undergoing an overhaul and will return soon.