LAHORE: Under the Ramazan package, the Punjab government is going to introduce yet another rate of flour in bazaar and, as the stakeholders fear, would end up further worsening the already volatile market.
At present, two rates are operating in the market. Flour from the officially released wheat is selling at Rs55 per kilo – Rs550 per 10kg bag. The millers are selling 15kg packing, made of open market wheat at the rate of Rs70 per kilo – around Rs1,050 for different brands.
As per Ramazan package [yet to be announced officially], rate for flour would be brought down to Rs37.50 per kilo – Rs375 for each bag of 10kg. Incidentally, this price will be less than choker’s, which, at present, is selling at Rs1,400 per (34kg) bag – costing Rs41 per kilo. It refreshes fear of 2009-10, when flour prices dropped below choker and farmers started feeding flour to animals in place of choker.
After Ramazan 10, fourth rate of wheat will come into play when fresh crop starts arriving in the market at the official rate of Rs2,200 per 40kg.
According to details of the package, the provincial government would release 0.15 million tonnes wheat at a rate of around Rs1,300 per 40kg – against the current release price of Rs1.950 – and bear a subsidy cost of Rs6 billion. The sale would be restricted to Ramazan bazaars.
“To make the matter even more complicated, fresh wheat crop would start arriving in the market by mid-April, with a price tag of Rs2,200 per 40kg. During the month of Ramazan, four different rates of wheat – and by extension flour – would be operating in the market. Ramazan package wheat would be available at Rs1,300 per 40kg. Other than Ramazan package release will be at Rs1,950 for the same quantity. The current open market rate is hovering around Rs2,400 and no one know how much would fresh arrival cost; though its official price is going to be Rs2,200 but can hardly expect it to follow the official line,” explains Muhammad Arif – a wheat trader from Sheikhupura.
Asim Raza of Pakistan Flour Mills Association thinks Rs6 billion would simply go down the drain – benefitting no one. The association has argued with the government to let the market operate on its own mechanics and this subsidy amount can directly be transferred to the deserving people. “The government has the data of each poor family in the province and it regularly sends money to their bank accounts. Why not this Rs6bn as well?”
Published in Dawn, March 20th, 2022
