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
