The Pakistan Flour Mills Association (PFMA) has cautioned that wheat and flour prices may rise further if urgent steps are not taken to allow imports, reported 24NewsHD TV channel.
PFMA Chairman Junaid Aziz told media that despite wheat being cheaper in the international market, prices in Pakistan remain significantly higher, which is fueling the surge in flour costs. He told that there is a provincial lockdown in Punjab due to the rising prices of wheat and flour in the country and pointed out that wheat and flour prices have increased by a record amount in a month. From August 1st to now, the price of wheat increased by Rs35 per kg and flour prices increased by Rs29 per kg during this period. The wheat price was Rs62 per kg on August 1 and it went to Rs97 per kg on September 1.
According to PFMA Chairman, on August 1, Grade-2.5 flour was Rs76 per kg and today it has reached Rs99 per kg, while fine flour was Rs79 per kg on August 1 and today it went up to Rs108 per kg. The wheat price in local market is Rs96 per kg while in international market, the price is Rs85 per kg. Junaid Aziz said that wheat is Rs10 per kg more expensive in Pakistan than in the global market today.
Junaid Aziz said that If the Sindh government releases wheat next week, local prices may decrease in the market. The government will have to import at least 1.5 million tons of wheat this year to stabilize the supply and to control inflationary pressures. He also requested the government to allow wheat import only to flour mills or Trading Corporation Pakistan (TCP), otherwise traders import wheat and sell it at high prices.