Punjab slashes wheat prices amid market surplus

Price revision announced a month after Punjab's initial decision to set flour rate according to private flour rate.

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The Punjab government has announced further reductions in the prices of 10kg and 20kg flour bags across the province.

Punjab’s Minister of Food, Bilal Yasin, confirmed the issuance of a notification detailing the price cuts.

In Lahore, the price of a 20kg flour bag has been reduced by Rs70, bringing the new price to Rs1,730 from the previous Rs1,800.

In Sheikhupura, the price of a 20kg bag has been reduced by Rs100, now selling at Rs1,640. The price has also been cut by Rs80 in Jhelum, Chakwal, Pakpattan, and Narowal, while in Multan, Sahiwal, Sargodha, and Attock, the reduction amounts to Rs60.

In Rawalpindi, Hafizabad, Sialkot, Nankana, and Okara, a decrease of Rs50 has been implemented. Meanwhile, the price in Toba Tek Singh, Jhang, Chiniot, Khushab, Bhakkar, Lodhran, Rajanpur, Muzaffargarh, Layyah, and Rahim Yar Khan has been lowered by Rs40.

In Faisalabad, Gujranwala, Gujrat, Wazirabad, and Mandi Bahauddin, the price has dropped by Rs30, while Bahawalpur, Bahawalnagar, Dera Ghazi Khan, Khanewal, Vehari, and Mianwali have seen a reduction of Rs20.

Last month, it was reported that small and medium farmers have been facing a tough financial situation for the last year. They earlier experienced lower corn prices and could not get the desired rate. Then they faced lower wheat prices in the domestic market, though the government fixed the price at Rs3,900 per 40 kg.

However, it was said that the government could not procure the desired quantity from the farmers since it has imported a reasonable quantity since October 2023 and "does not have the capacity" to hold surplus wheat.

This policy rate gradually climbed to 5.5% in July 2023 within a span of 18 months and remained stable at that level. This shows that the acceleration in prices has slowed down in the world, specifically in the US.