Govt warns hoarders of action as flour price soars

In last one year, flour prices have increased four times

LAHORE: Even after the government has reduced the wheat price from Rs1950 to Rs1,830 per 40 kilogrammes in the open market, the flour price has surged by at least Rs6 per kilogramme. In one year the flour price has surged by Rs18.

The Aata Chakki Association claimed that they had to increase the price of flour by Rs6 per kilogramme due to the increase in the price of wheat in the open market. Now the flour is being sold at Rs70 per kilogramme across Punjab.

The representatives of the association said the price of wheat has increased by Rs300-450 per 40 kilogrammes in the last four months, so the price of flour has been increased amidst an increase in the market price of wheat as the wheat market price has reached to Rs2,200 per 40 kilogrammes.

Aata Chakki Association General Secretary Abdul Rehman told The Express Tribune that they could also provide cheap flour to masses like flour mills if the government provided them subsidised wheat as they (the government) provide to the flour mills.

Wheat, flour prices to go up in Punjab

The sources said the Chakki Association has included around Rs22-25 as grinding charges in the per kilogramme price of the flour. On the other hand, the flour mills charge only Rs4.85 per kilogramme.

The sources revealed that the government’s negligence has been one of the major reason of the increase of wheat and flour prices. In the last one year, flour prices have increased four times. When the incumbent government came to power, the price of flour was Rs52 per kilogramme then it rose to Rs54 per kilogramme in just one month.

The price of flour continued climbing and after Rs60 per kilogramme, it reached Rs70 per kilogramme in two weeks. Thus, during the tenure of the Pakistan Tehreek-e-Insaf (PTI), the flour prices jacked up to Rs18 per kilogramme.

With the increase in the price of the flour, the 20-kg bags of the commodity have disappeared from the market. The supply of flour from the flour mills has also been reduced in the provincial capital.

Meanwhile, the wheat prices in the open market of the province have decreased by Rs120 per 40 kilogrammes after the Punjab government activated the border check posts and the wheat prices in Lahore and Rawalpindi dropped from Rs1,950 to Rs1,830 per 40 kilogrammes. While the flour stocks have been restored 70% after flour mills have increased supply in the province including Lahore and Rawalpindi. Chakki owners have fixed the price of flour at Rs 70 per kg without any reason, during a government inquiry revealed that the wheat price of Rs 2,200 per 40 kg fixed by Chakki owner was baseless and during the last two days, the maximum price of wheat in the province was Rs1,950 per 40 kilogrammes, which is now reduced.

Punjab Food Minister Samiullah Chaudhry has said there was no shortage of flour in the province while some vested interests were manipulating the prices through hoarding. He warned that strict action would be taken against those involved in profiteering and hoarding. The minister said a flour bag of 20 kilogrammes was being sold for Rs805 while a 10-kilogramme bag was available for Rs402.

Price hike of flour floors citizens

The government officials said the Chakki owners sell only 5-7% of the flour used by the public and currently under a well-organised campaign, the price of Chakki flour has been surged to fleece pressurise the government to provide subsidised wheat to Chakkis.

After the reports from the Food and Industry Department, the government has directed the district administration to take strict action to control the prices of the flour. In the last four days, the wheat price in Punjab’s open market has dropped significantly by Rs120 per 40 kilogrammes and after the federal and the provincial governments took steps to stop the supply of flour to other provinces.

Apart from this, the food department has also increased the daily supply of flour throughout Punjab including Lahore with the help of Flour Mills Association. In the past four days, 190,000 flour bags have been supplied to Lahore daily and 160,000 bags of flour daily to Rawalpindi.

Published in The Express Tribune, January 18^th, 2020.