The wheat market in Pakistan is presently experiencing some price fluctuations, as values are different in different provinces. This week, the price of wheat in Pakistan is between Rs3,600 and maximum rate of Rs4,700 per 40 kilo and the retail price of 1 kilo wheat is between Rs105 to Rs110. The discrepancies in pricing have been attributed to poor enforcement of control prices set by the government and market dynamics in the region.
Punjab
In Punjab, one of the biggest wheat-producing provinces of the country is having the control price of Rs3,650 per 40kg. Despite this fact, local markets are experiencing lower costs and are creating problems for farmers who are having difficulty recovering their production costs.
Sindh
Similarly, in the province of Sindh, the control price of wheat is fixed by the government as Rs3,850 per 40 kg, however the prevailing market price is said to be less than the control price having serious consequences on both producers and small-scale vendors.
Khyber Pakhtunkhwa and Balochistan
The situation is similar in Khyber Pakhtunkhwa and Balochistan the control price set is Rs3,850/40kg. Nevertheless, price of wheat is still lower in local markets than the thresholds set up by the government due to persistent gap in price monitoring and enforcement mechanisms.
Analysts suggest that these inconsistencies have been worsened by issue of logistic challenges, supply chain inefficiencies and regional demand variations.
The price variations for wheat crops from province to province have created a misunderstanding among farmers about the market.
With wheat being a staple food in Pakistan and as one of the key commodities of the agriculture economy, experts are stressing the need for a greater level of government intervention in ensuring price stability.
Without positive enforcement of control prices and better management of the market, farmers and consumers alike are likely to continue to face uncertainty in the wheat market.
Flour Prices
Additionally, the price of flour in Pakistan has increased over the years making bread inaffordable for low-income families. In cities such as Lahore, Gujranwala and Faisalabad, flour prices have increased by up to Rs30 a kilo, while in Karachi and Quetta the prices have gone up by Rs40 and Rs20 respectively.
Badruddin Kakar, central chairman of Flour Mills Association, says official rates are not much in availability except in few cities.
Shopkeepers are selling smaller 15kg bags at Rs2,000 raising the costs to the consumer.
The citizens are frustrated because daily life is becoming a struggle where even a simple loaf of bread is a luxury and there is a need for better regulation of the markets.
Also read: Wheat Crisis: Federal Government Writes Letter to Punjab
