- The deregulation of the market will sparkle the rise in wheat prices.
- Wheat rises to Rs3,100, the more expensive bags of flour.
- Wheat jumps RS1,000, bags of flour at the top of RS500.
Lahore: The prices of wheat and flour increased sharply, with the climbing of wheat from RS300 this week to Rs3,100 by Maund (40 kg).
The hike follows an upward trend of one month, during which wheat won nearly RS1,000 per 40 kg and the price of a 20 kg bag of flour increased by approximately RS500.
This recent hike is part of a broader trend, as the prices of wheat and flour have increased regularly. Shape increases have made the alarm on market manipulation and the lack of effective government surveillance.
Critics say that the actual government’s abrupt decision to stop regulating the wheat market without notice has created an environment conducive to price manipulation. This lack of surveillance may have enabled wheat hobby to artificially inflate prices, further exacerbating the situation.
According to the president of Pakistan Flour Mills Association (PFMA) Asim Raza, the government was faced with challenges in the control of wheat prices. Raza warned that the continuous increase in wheat prices should trigger a corresponding increase in flour prices in the near future.
In response to these developments, the association actively focuses on the question to better understand the underlying causes and the potential implications for the market.
Nevertheless, the emerging situation, according to the initiates of the market, highlights the complex interaction between government policies, market forces and price dynamics in the wheat and flour sectors.
The president of the Progressive Flour Millers (PFMG) group, Khaliq Arshad, warned that low wheat reserves in the country could be one of the main reasons for the upward trend of its prices.
According to him, Punjab estimated the reserves of more than 2.5 million tonnes, both in the public and private sector, which are certainly not enough to meet demand until April 2026.
It was of the opinion that the prices of wheat and flour could continue to climb regularly if the authorities did not take corrective measures. The upward trend in cereal prices has prompted traders to sell wheat stored on the free market. This is why the price of wheat was reversed from RS3 250 for 40 to Rs3,100.
To a question, he underlined the need to adopt a proactive approach to the federal and provincial governments to complete the stocks of wheat in order to meet domestic demand before the start of the next harvest season. Importing wheat can be inevitable given the current and scalable situation, he warned.
The president of the PFMG, Majid Abdullah, observed that stakeholders closely monitor the situation, anticipating potential impacts on the wider food market.
He revealed that the notification issued by the Punjab government about the price of the price of wheat to Rs2 900 by 40 kg and RS1,750 flour on the retail market is no longer followed on the market. The strong market dynamics have confused a lot, and these dictate demand and supply as well as prices now, he added.
It is a simple question of demand and supply, he said, adding that if the government wants to maintain the price of flour at certain levels, politics must be revised according to the realities on the ground.
When contacted, the Special CM assistant, price control and Salma Butt raw materials were not available to comment on specific requests concerning the overvoltage of wheat and flour prices that have increased for about a month.
