Shortage of freight vehicles raises flour prices

Increase of Rs250 per 20kg witnessed after load restrictions

LAHORE:

Following the implementation of an axle load management regime in Punjab, a shortage of freight vehicles has led to a significant increase in the price of wheat.

The restriction enforced by the Punjab Highway Patrol Police limits the load on freight vehicles, causing transporters to hike fares. Consequently, traders responsible for delivering wheat to flour mills have raised wheat prices, sources in the sector said.

They said the shortage of trucks for transporting wheat from South Punjab to Lahore had led to a shortage in the provincial capital’s flour mills, resulting in a price hike.

In Lahore and Rawalpindi, the price of a sack of flour increased by Rs50 and that of fine flour by Rs250.

The load management regime requires strict adherence to limits, enforced through SOPs issued by the additional IG of the highway patrolling police.

A new mobile app, PALD (Punjab Axle Load Data), developed with the Punjab Information Technology Board's support, facilitates checking.

Highway patrol officers use the app to register and monitor weighing devices with the power to impound overloaded vehicles until excess weight is removed.

Due to the new regulations, transportation costs for flour mills have increased. A trader said merchants now require two trucks instead of one for daily wheat transportation, exacerbating the shortage of available vehicles.

The situation has been worsened by large quantities of maize and wheat being transported from Punjab to Karachi, further depleting local truck availability.

As a result, wheat price in Lahore has risen to Rs3,200 per maund.

Flour mills have responded by increasing the prices of flour.

The new retail price of a 20kg bag of flour is Rs1,800, while a bag of fine flour costs Rs7,700.

The sources alleges that field teams from the food department were not accurately reporting the market rates to higher officials, fearing reprimands. Consequently, the authorities are not fully informed about the reasons behind the high costs of wheat and flour.

However, government officials blamed the traders and mill owners for the problem rather than the load issue.

A food department spokesperson claimed that over 100 brands of flour were available in Lahore and over 600 brands across Punjab with the price of a 10kg bag ranging from Rs750 to Rs840 in the markets.

The spokesperson denied flour shortage and asserted that there was ample stock in all districts.