Then they faced lower wheat prices in the domestic market, though the government fixed the price at Rs3,900 per 40 kg. Under financial globalisation, there is an association between the international commodity prices and the federal funds rate. The federal funds rate is also termed the international policy rate, which was at 0.25% in February 2022. The government had to jack up the wheat price to Rs3,900 per 40 kg in 2022 keeping in view the escalated cost associated with rupee devaluation along with high international wheat prices. When the international wheat price increases, domestic financial capitalists will try to get the benefit out of this price difference.

Source: The Express Tribune June 17, 2024 19:18 UTC