Pakistan

Wheat and flour prices rise to record highs

Flour prices have continued to climb record levels despite a strong wheat harvest, with the price of a 50-kilogram flour bag reaching as high as

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Web Desk: Flour prices have continued to climb record levels despite a strong wheat harvest, with the price of a 50-kilogram flour bag reaching as high as Rs8,000 in some parts of the country.

The increase has also pushed up the cost of different varieties of flour in wholesale markets, raising concerns about its impact on consumers and the price of bread and other staple foods.

In Karachi’s wholesale market, wheat prices have risen substantially over the past four months, increasing from around Rs90 per kilogram to Rs132 per kilogram.

Meanwhile, the price of 2.5-number flour has reached Rs155 per kilogram, while fine flour is selling for about Rs157 and mill-ground flour has climbed to Rs180 per kilogram.

The sustained increase has added pressure on household budgets, particularly for lower-income consumers who rely heavily on wheat-based food.

Wholesale Grocery Association Chairman Rauf Ibrahim attributed the surge to the deregulation of wheat prices, the removal of the support price mechanism and alleged hoarding.

He said changes in the government’s wheat policy had contributed to market uncertainty and allowed prices to rise.

The government’s plan to import 750,000 tonnes of wheat through the Trading Corporation of Pakistan is also facing questions over whether it will be sufficient to meet domestic requirements.

According to Ibrahim, the proposed imports may not adequately cover the country’s needs, while the imported wheat is not expected to arrive before November.

As a result, market pressures could persist in the coming months if domestic supplies remain tight.

Khalid Hussain, chairman of a farmers’ alliance, said the current wheat policy was hurting both producers and consumers.

He questioned the need for wheat imports, arguing that Pakistan is itself a major wheat-producing country.

The policy, he said, could create difficulties for farmers while simultaneously increasing costs for consumers.

Mohammad Daniyal, country head of LDC Pakistan, said wheat of a similar quality was trading internationally at around $290 per tonne, compared with roughly $270 per tonne for Pakistani wheat.

The price gap highlights concerns about Pakistan’s competitiveness in the international wheat market.

Experts have also pointed to inadequate storage infrastructure as a major weakness in the wheat supply chain.

Poorly maintained warehouses and open storage facilities can expose wheat to moisture and pests, potentially reducing its quality and export value.

Improving storage facilities could therefore help reduce losses and strengthen the marketability of Pakistani wheat.

Pakistan produces roughly 30 million tonnes of wheat annually, while domestic consumption is estimated at around 31 million tonnes.

The gap between production and consumption adds to the pressure on supplies and could increase the country’s reliance on imports when domestic availability falls short.

With wheat prices continuing to rise, consumers are now facing higher flour costs at a time when the government is under pressure to ensure adequate supplies and contain food inflation.

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zaryun pervaiz
Written by

zaryun pervaiz

The writer is a political analyst covering politics, national security, foreign affairs, policy shifts in South Asia and beyond, energy and economy.

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