In the absence of official wheat releases and millers starting to purchase from the open market, a 22.22 per cent hike in the support price on Friday – from Rs1,800 to Rs2,200 per maund – translated into an increase of 11 per cent in the cost of flour, further aggravating the situation of the poor.
Previously available in the market at Rs550, the 10kg flour bag will now sell at Rs660, and the 20kg bag, which had previously cost Rs1,100, will now cost Rs1,310 – the biggest rise ever for the poor as the subsidy (Ramzan package) has ended on the one hand and the price of wheat has increased on the other.
Several millers with a substantial share of the market have announced these rates. However, the Punjab chapter of the Pakistan Flour Mills Association (PFMA) says that it has asked its members to limit the increase to Rs10 per kilogram, and even that will not apply province-wide. According to Asim Raza of the Pakistan Food and Market Authority, the increase will decrease correspondingly in south Punjab, where wheat is still relatively cheap.
Nevertheless, it is being feared that higher rate (Rs11 per kilo) will be followed by all.