Commodities
Punjab-KP Wheat Price Gap Fuels Smuggling Fears
A disparity in government wheat release prices between Khyber Pakhtunkhwa (KP) and Punjab is fuelling smuggling fears.
The gap of Rs680 per maund, or 17.9% more, has been criticized for encouraging smuggling and hoarding by middlemen and inefficient flour mills in Punjab.
KP relies heavily on wheat supplies from Punjab due to its own limited production.
Punjab's lower wheat release price of Rs3,800 per maund is causing an arbitrage profit margin of Rs680 per maund after transport costs, making it profitable for traders to transport wheat from Punjab to KP or other high-price areas.