The market has been hit by a severe wheat and flour crisis, with prices experiencing a sharp and sustained surge. This week, the price of wheat increased by Rs300, reaching Rs3,100 per 40kg maund. This recent jump is part of a broader, alarming trend that has seen wheat prices rise by nearly Rs1,000 over the past month, while the cost of a 20kg bag of flour has increased by approximately Rs500. The steep and rapid inflation has triggered widespread alarm over potential market manipulation and a critical lack of government oversight.
Industry experts and critics are attributing the crisis to the provincial government’s abrupt decision to cease its regulation of the wheat market. This move, made without prior notice, is believed to have created a vacuum that empowered hoarders to artificially inflate prices. The situation is further exacerbated by critically low national wheat reserves. According to Khaliq Arshad of the Progressive Flour Millers Group (PFMG), Punjab’s estimated reserves of 2.5 million tonnes are insufficient to meet demand until the next harvest, making wheat imports inevitable.
Officials from millers’ associations have issued stern warnings about the ongoing situation. Pakistan Flour Mills Association (PFMA) Chairman Asim Raza confirmed that the rise in wheat costs will inevitably lead to a corresponding increase in flour prices. Furthermore, PFMG President Majid Abdullah disclosed that the provincial government’s official price cap notifications—setting wheat at Rs2,900 and flour at Rs1,750—are being completely ignored in the open market, where powerful dynamics of demand and supply now dictate pricing.
In response to the escalating crisis, industry stakeholders are urging immediate and proactive measures from both federal and provincial governments. The recommended actions include swiftly supplementing dwindling wheat stocks through imports and revising existing policies to align with ground realities. Despite the urgent need for comment, government officials, including the Special Assistant to the CM for Price Control, were unavailable to address specific queries regarding the month-long price surge and the proposed solutions.
