The government’s unwavering efforts to combat sugar hoarding and speculation are finally paying off, bringing relief to consumers burdened by rising food costs. Moreover, the arrival of three cargo vessels carrying imported wheat has further contributed to the reduction in grain and flour prices.
A ship laden with 37,000 tons of Bulgarian wheat is set to commence unloading within the next few days, while two other vessels carrying 55,000 and 53,602 tons of Russian wheat respectively have anchored at the outer limits of the port, awaiting offloading procedures.
Muzammil Chappal, Chairman of the Cereal Association of Pakistan, highlighted the significant impact of imported wheat, which is now averaging around Rs. 101-102 per kilogram. This price reduction is a welcome relief for consumers grappling with skyrocketing food costs. Chappal also called for an increase in wheat imports to exert pressure on market manipulators and deter stockpiling of this essential commodity.
In a remarkable development, a private-sector group has successfully negotiated an import agreement for 700,000 tons of wheat. In the current economic context, characterized by the resurgence of the Pakistani Rupee, stakeholders are expected to open letters of credit, potentially leading to lower landing costs for imported goods.
Simultaneously, over the past week, retail prices of fine flour and flour no. 2.5 have experienced a noticeable decline, plummeting by Rs. 10 per kilogram. Aamir Abdullah, Chairman of the Pakistan Flour Mills Association (PFMA), confirmed that open market wheat prices have dropped from Rs. 120-123 to Rs. 118 per kilogram with the arrival of imported grain. Retailers are now offering discounts on various flour varieties, with flour no. 2.5 and fine flour priced at Rs. 136-137 per kilogram.
On a related note, Faisal Anis Majeed, a prominent wholesaler and importer, reported that the sustained crackdown on hoarding and speculation has contributed to a significant drop in wholesale sugar prices. These rates have fallen from Rs. 185 per kilogram to Rs. 145 per kilogram in the span of the last 10 days.
However, the relief in wholesale sugar prices has not yet been fully reflected in the retail market, where sugar prices continue to hover between Rs. 160-170 per kilogram. While this is still an improvement from the peak prices of Rs. 180-190 per kilogram witnessed recently, consumers hope for further reductions in the coming weeks.
These developments signal a positive shift in the food market, providing some respite to consumers in Pakistan grappling with the economic challenges posed by food price inflation.
