Sindh govt’s Rs2 roti plan may trigger shortage, price inflation in the near future

Sindh Governor Kamran Tessori has announced a subsidised food programme for the poor. As part of this initiative, the government will provide roti (flatbread) at a price of Rs2.

Tessori stated that the provision of roti at a reduced price is aimed at helping people affected by inflation and will be implemented in specific areas of the metropolis. He emphasised that this noble cause will be pursued as a mission.

During a ceremony on Sunday, the governor announced the establishment of up to 300 tandoors (traditional clay ovens) across the Sindh capital, where roti will be sold for only Rs2. Additionally, he reiterated that ration bags would be distributed among one hundred thousand deserving families in the port city.

While it may seem beneficial for the inflation-hit people of Karachi to have access to roti at a significantly lower price of Rs2 compared to the Rs20-25 market price, there could be unintended consequences.

If the government sets up 300 temporary tandoors selling roti at Rs2, the majority of people may opt to buy from them rather than purchasing roti from tandoors selling it at a higher price. Consequently, the tandoors selling roti for Rs20 may be forced to close as they would be unable to compete with these subsidised tandoors.

Once the government discontinues the cheap roti scheme or ceases to offer it at reduced rates, there is a potential for a shortage to arise. With only a limited number of tandoors available for citizens to purchase roti from, the scarcity could drive up the price of roti to Rs30 or even higher.

This highlights the possibility that the government’s initiative of selling roti at a reduced rate may not be sustainable in the long run. The temporary availability of roti at Rs2 might not be as beneficial as initially perceived. Only time will tell whether this programme will provide temporary relief to the masses or worsen the situation.