Flour and sugar prices increase at government utility stores in Pakistan

Islamabad: The Pakistan government has announced a new hike in the prices of essential commodities including flour, sugar and ghee at government utility stores across the country.

The price of wheat flour has been hiked by 62% to Rs 64.8 per kg from Rs40. This is a significant increase since wheat flour is the country’s most important staple flood which is used to make roti and naan that most Pakistanis eat with every meal.

Under the new rates for utility stores, the price of sugar has been raised from Rs70 per kg to Rs89 - a 27% increase. The price of ghee has been increased by Rs75 per kg and is now available at Rs375 per kg. In comparison, 1 kg of ghee now costs around Rs500 per kg in the open market or private stores.

The change will affect middle and low-income group buyers who rely on government-operated utility stores where basic commodities are generally cheaper than private supermarkets. Utility Stores Corporation (USC) is the country’s largest network of convenience stores owned by the government that provides basic commodities to more than 15 million customers through its 4,000 outlets and 1,000 franchises.

However, the government has ensured the provision of essential food items at subsidised rates to poor households under the prime minister’s relief package.

The utility store management said in a statement that new prices would not impact the beneficiaries of the Benazir Income Support Programme (BISP) - those poorest households registered in the BISP and those below the poverty line. The subsidies would help protect the poor and vulnerable from the price increase. “They would continue getting wheat flour at Rs400 per 10kg bag, ghee at Rs300 per kg, and sugar at Rs70 per kg,” the USC said. They would also get small discounts on pulses and rice. However, the monthly purchasing limits of beneficiaries have been capped and they would be allowed to purchase a maximum of 40kg of wheat flour, 5kg of sugar, and 5kg of ghee per month.

All other utility store customers would now be provided wheat flour at Rs648 per 10kg bag, and ghee and sugar at Rs375 and Rs89 per kg except the extremely poor families. The USC said it has launched a new system that would help give subsidies to the targeted families digitally. Under the new system, the customers would be required to secure their monthly purchase eligibility before visiting the store through a text message on 5566 so that they are provided with a one-time password and national identity card confirmation for the purchase of subsidised essential commodities (flour, ghee, sugar, pulses and rice). The regular customers would also be allowed a fixed monthly purchase of 20kg of flour and Rs3kg each for sugar and ghee per month.