Pakistan: Wheat flour prices on the rise despite bumper crop

Published Jun 5, 2023

Tridge summary

Despite the government's claims, wheat flour prices in Pakistan have risen and are now exceeding Rs150 per kilogram nationwide. Experts predict that wheat consumption, already at 29.7 million tonnes, will rise by 7%, leading to a potential shortfall of 9.3 million tonnes, necessitating significant imports. The country has already imported $1 billion worth of wheat in the first nine months of fiscal year 2023, marking a 25% increase from the previous year. The ongoing conflict in Ukraine and Russia, major wheat suppliers, has further increased global wheat prices, exacerbating Pakistan's financial strain due to the burden of wheat imports. This strain is compounded by a decrease in Pakistan's foreign exchange reserves, with the State Bank of Pakistan's reserves dropping by $119 million to $4.19 billion on May 19.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Contrary to the government’s claims about a declining trend in wheat flour prices, the commodity has seen a price hike and is not available at less than Rs150 per kilogram anywhere in the country. However, the situation on the ground is completely opposite as the common man is facing enormous challenges in making ends meet due to the skyrocketing prices of essential commodities over the course of one year. According to the experts, wheat consumption in the country has increased by around 7% during the ongoing year. They are of the view that the wheat consumption in the country is likely to reach 30 million tonnes, which will force the government to import the essential commodity. Federal Committee on Agriculture expects wheat production to be around 20.68 million tonnes during 2023. According to a report by the Pakistan Bureau of Statistics (PBS), the country has imported wheat worth $1 billion during the first nine months of the fiscal year 2023, recording an increase of 25% from ...

Source: UkrAgroConsult