Wheat prices surge in punjab amid shortages, flour mills demand free market regulation

LAHORE: The price of wheat in Punjab has surged by approximately Rs300 per maund in the last two weeks as private sector stocks and market reserves dwindle. The shortage led to a sharp rise in wheat prices across Punjab.

Flour mills, operating according to the basic rules of supply and demand, had been selling flour at prices lower than the government’s rates. However, the Food Department’s alleged attempts to control the free market with what are seen as unlawful notifications have caused significant disruptions.

Riaz Ullah Khan, Chairman of the Punjab Flour Mills Association, has called for the immediate withdrawal of the show-cause notices, urging the government to allow flour sales based on open market prices. He said flour mills are currently selling flour in line with existing wheat prices and should be allowed to operate freely without undue interference.

He said to stabilize flour prices and ensure availability to the public at fixed rates, the government is expected to release wheat from its official reserves, a strategy it has historically employed whenever flour prices threaten to exceed the official rates.

The decision by the Punjab government to set private wheat prices has raised concerns, as it conflicts with the federal government’s minimum support price of Rs. 3,900 per maund, the chairman said adding the Food Department’s attempts to regulate the market have been criticised as unnatural, with the issuance of show-cause notices deemed unconstitutional and unjustifiable by stakeholders.