Islamabad, Oct 14: Flour Prices Surge by Rs.10 in October
To further its argument about the new price adjustment for flour by Rs1 per kg, the Punjab Flour Mills Association has cited an increase in the cost of wheat.
The cost for a 20kg bag of flour has risen by Rs 250 as the price of wheat has increased gradually.
For the first time in the past two weeks, wheat has hit Rs3,000 per maund (40 kg) in the big cities of Lahore and Rawalpindi.
The Punjab Flour Mills Association (PFMG) also report scarce wheat on the markets.
The price of wheat has crossed the bracket in the Rawalpindi and is now available at Rs3,200 per 40 kg, higher than the government mandated maximum retail price of Rs2,950.
Likewise, the flour millers of Lahore are paying Rs 3000 to forty of canal suc, which is being violated.
The millers contend that supply and demand—two fundamental concepts of market economy—are driving flour mill operations.
The food department issued a show-cause notice in response to the hike in flour prices, which PFMG denounced as being capricious and unfair.
Rauf also added today the government was also meeting the small shortage of the grain through import.
‘Wheat prices are downward sticky so the decision should take into account future expectations of crop production and international price,’ he said.
Wheat import has increased 11 times to 622,515MT in first two months of current Financial Year 2023 against 57,000MT in the first two month of last Financial Year, as the PBS data reveal.
The bill on wheat import increased 19 times to $310.76 million in the two months under review from $16.46 million of corresponding two months of the last year.
