Food inflation rises unchecked

The provincial government has failed to rein in inflation as prices of several essential food items, including wheat flour and pulses, have increased across Punjab.

In contrast to Prime Minister Shehbaz Sharif’s claims of providing essential commodities at economical rates, prices of flour and other essential food products have been increased several times since the government led by the Pakistan Muslim League-Nawaz (PMLN) came into power in the centre and Punjab.

Flour millers blame a high wheat support price and enhanced procurement target of the Punjab Food Department for successive increases in the flour rates in urban areas.

The Progressive Flour Millers Group (PFMG) claims that the latest increase of Rs100 per 20kg wheat flour sack is the result of uncertain market conditions. The enhanced wheat procurement target has contributed to inflating the prices in grain markets across the province.

The department had initially decided to procure 4.5 million tons of wheat this year, which had now been enhanced by half-a-million tons.

The additional buying by the provincial food department and increased freight cost have increased wheat price for the private sector. Currently, wheat grains are being traded at Rs2,500 per 40kg, so the millers had to increase flour rates by Rs100 per 20kg bag, the mill owners said.

They also highlighted that district administrations were seizing trucks loaded with wehat on roads in order to the fulfil food department’s target because the open market rate was higher than the government’s support price.

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The group underscored that the provincial food department should start early release of wheat from the government warehouses, or stop buying additional wheat from the market as it would leave the market dry and cause a further increase in the prices of wheat and subsequently flour.

Similarly, roti and naan makers have announced an increase in prices. The new rates will be Rs15 for roti and Rs20 for naan.

Roti makers blamed increase in wheat flour price, gas tariffs and cost of doing business for the increase. Naan makers highlight that the price of fine flour had been jacked up by Rs300 per bag on Monday, after which it has become impossible to sell roti and naan at previous rates.

A market survey showed that the sugar price had increased by Rs130 to Rs4,130 per 50kg in the wholesale market in the provincial capital.

The price of rice increased by Rs30 to Rs40 per kg and it is being traded at Rs140 and Rs150 per kg. Masoor pulse rate has also witnessed an increase of Rs25 per kg, after which its price was fixed at Rs260. Mash pulse rate has touched Rs300 per kg after an increase of Rs30.

Vanaspati ghee and cooking oil prices have risen by up to Rs60 per kg.