KARACHI: Wheat flour prices rose sharply by Rs 6 per kilogram in the domestic market on panic buying of wheat grains. Shopkeepers informed that wheat flour (Dhai Number Aata) prices surged to Rs 60 per kilogram Friday compared to Rs 54 per kilogram two days earlier. Flour millers have increased prices saying that the wheat grains are in short supply in the market.
In addition, prices of wheat flour (Fine Aata) increased by Rs 4 to Rs 62 per kilogram in Karachi. Traders said the country is facing a shortage of 1.5 million tons wheat this year as it has produced some 25 million tons wheat against demand and target of 27 million tons.
Ahead of expected shortfall in the country, the federal government has allowed duty/tax-free import of some 1.5 million tons wheat to meet the demand and avoid shortage in the domestic market.
Market sources said that currently wheat is available at Rs 48 per kilogram in Sindh due to panic buying and flour mills are taking full advantage of the current situation and increased the prices without any justification to earn exorbitant profits on the sale of wheat flour.
The wheat grinding cost is Rs 3 to Rs 5 per kilogram, despite that fact that flour mills are earning over Rs 10 to Rs 12 per kilogram margin on wheat flour. Traders said that the government has taken wheat import decision very timely as currently sufficient wheat stocks are available in the domestic market.
They said that although there is some panic in the market and wheat prices have gone up because of administrative weaknesses. The local government with support of local administration can tackle this crisis with better administrative measures, they added.
Copyright Business Recorder, 2020
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