About 300,000 tons of wheat is in the process of reaching markets while about 50,000 tons of imported wheat will reach city ports in ten days. PHOTO: FILE
The price of flour in Pakistan is unlikely to come down despite the government allowing import of wheat. Pakistani consumer should brace for high flour cost at a time when the release of wheat from official warehouses usually helps stabilise its price, said wheat millers.
The sources continued to say that consumers should not expect any noticeable reduction in the price of wheat and especially flour, despite the import of fairly large quantities at lower prices.
About 300,000 tons of wheat is in the process of reaching markets while about 50,000 tons of imported wheat will reach city ports in ten days, said market insiders.
However they warned that the imported wheat is of low quality and cannot be used for bread making. The only viable option will be to blend it with local wheat.
This blended wheat flour will offer no price concession to consumers said the sources, adding that the importer and miller will pocket the benefit of low price wheat.
The price of imported wheat ranges between $270 to $280 per ton and is available in Karachi at around Rs1,200 per 40 kg, which is much lower when compared with price of local wheat at over Rs1,400 per 40 kg.
The price of local wheat in the open market in south Punjab is around Rs1,370 per 40 kg. In central Punjab it is around Rs1,400, whereas in upper Punjab the price for local wheat is around Rs1,450 per 40 kg.
The price of imported wheat is expected to decline further in the coming months, said market sources. Ideally, they added, the price of blended flour should be at least Rs40 per 10kg bag, less in Karachi given the proximity to the port.
The current price for a 10kg bag of flour in Karachi is around Rs425, whereas in Punjab the current price of 10kg bag ranges between Rs375 to Rs400.
It is possible that within a few weeks it will be feasible to sell imported wheat upcountry, particularly in Punjab, said millers.
The imported wheat will cost flour mills about Rs1,250 to Rs1,300 per 40 kg with bag, said a miller.
Published in The Express Tribune, August 28th, 2013.
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