Explaining the rationale behind the decision to cut prices, Yusuf said that price of 100kg wheat bag has come down to Rs2,250, reducing the input cost incurred by flour mills.
“We wanted to pass on the benefit of this reduction to consumers since the holy month of Ramazan is approaching,” he said.
He expressed hope that retailers would implement the price change immediately so that people could get some relief in pre-Ramazan purchases.
“We expect wheat prices to come down further. If that happens we will be able to reduce prices and pass on more benefit to the people,” added Yusuf.
Chakki operators have said that they will convene on Tuesday to discuss the possibility of changes in the price of chakki flour. Sources said that chakki flour prices may also see a downward revision in the days to come. Provincial governments are also planning to provide subsidised flour during the month of Ramazan. The government of Sindh is considering a proposal put forward by the Sindh Food Department which would enable the provision of flour at Rs20 per kg.
Official sources said that approval for this proposal is expected soon and that supplies would begin before the start of the holy month.
However, it is important to note that prices in retail markets did not come down on Monday. Retailers contended that current stocks had been purchased at the higher price and that rates would be revised after new stocks are received from mills and wholesalers.
Published in The Express Tribune, August 3rd, 2010.
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