Wheat imports unlikely to cut prices
KARACHI: The government’s decision to initially import 750,000 tonnes of wheat through the Trading Corporation of Pakistan (TCP) may not cause a significant drop in wheat prices in the markets, but it may resist any further escalation, millers and traders said. However, traders said that already high flour prices, triggered by rising wheat prices in the open market, coupled with daily petrol…
In a bid to avert a potential wheat shortage and price hike, the government has opened a tender for importing 750,000 tonnes of wheat through the Trading Corporation of Pakistan (TCP). Nine international companies participated in the tender, with offers ranging from $348.83 to $369.95 per tonne. However, millers and traders believe that the import may not significantly lower wheat prices, but it may prevent any further escalation.
Consumers, particularly low- and middle-income individuals, are cutting their flour consumption to 1-2kg instead of buying bulk quantities due to high utility and fuel bills, which have further increased the cost of flour. The wheat price in the open market remains unchanged at Rs12,500 per 100kg bag since the government initiated efforts to allow wheat imports.
The Karachi Retail Grocers Association (KRGA) General Secretary Farid Qureishi stated that cash-strapped consumers are now settling for smaller quantities of loose wheat flour instead of 5kg bags. The Karachi Wholesalers Grocers Association (KWGA) Chairman Rauf Ibrahim said that the 750,000 tonnes of imported grain would be negligible compared to the estimated 70,000 tonnes of daily wheat grinding in the country. The situation is expected to worsen during winter as demand for wheat and wheat flour increases.
CAP founder and Chairman Muzammil Rauf Chappal emphasized that the import of 750,000 tonnes of wheat may not cause a notable drop in prices, but it could help stabilize wheat prices in the markets. He urged the government to allow the private sector to import wheat to prevent potential shortages and further price hikes, as Pakistan's annual wheat requirement is estimated at approximately four million tonnes. The current international market offers more competitive prices, with wheat available at around $320-325 per tonne.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
