Karachi: Wheat and flour prices have increased abruptly in Karachi’s wholesale market, raising new concerns about food inflation and market supply, despite government guarantees of sufficient national actions.
Wholesale wheat is now sold by RS90 per kg, compared to RS72 in mid -August and RS62 in July. This increase has driven the price of the flour. 2.5 A RS97 per kg and fine flour at RS103, compared to RS81 and RS85, respectively. In early August, these prices were RS74 and RS79 per kg.
Chakki flour varieties are now available at wholesale rates between RS110 and RS135 per kg, marking an average increase of RS20 per kg. According to the sensitive Price Index (SPI) for the week ending on August 28, the price of a 10 kg wheat bag rose to RS794 from RS640. Consequently, 20 kg wheat flour bags are now sold between RS1,700 and RS2,100, while a Kg of fine flour has a price of RS106, compared to RS1,350-1,700 and RS93, respectively, in early August.
With the flour prices that continue to increase, an additional load is expected for consumers once the sellers of Roti and Naan (PAN) adjust their prices to reflect greater input costs.
Despite the government’s claims for adequate actions, the wholesale wheat rate reaches RS90/kg in Karachi
This increase is produced despite a statement last week by the Minister of National Food Security and Research, Rana Tanveer Hussain, who, while presiding over the eighth meeting of the Trigo Board, said that the country had 33.47 million tons of wheat with a requirement of 33.58 million tons, a marginal deficit of only 0.11 million tons. He said the situation was under control and ruled out wheat imports, stating that existing actions were enough.
However, the interested parties of the market dispute the evaluation of the government. The president of the Karachi Wholesalers Grocers Association (KWGA), Rauf Ibrahim, said the claimed availability figure includes 400,000-500,000 tons of last year’s leftover shares. He estimated the actual size of the crop in 29-30m tons this year, of which 3-4 million tons have already been diverted by the feed of cattle.
He questioned the disconnection between the increase in prices and the government’s claim of broad actions. He criticized the government’s decision to suspend the acquisition of wheat for flour mills and eliminate the support price under the IMF program, saying that he had created a free market environment that benefits hoarders, speculators and flour mills, but not consumers.
Rauf warned that the interruption of wheat acquisition had left Floour Millers without official quotas, which previously helped stabilize the market. He added that farmers who sold wheat at RS2,200 for 40 kg are now lost, while flour mills continue to store grains in private silos.
With the next wheat harvest that will be presented in March/April 2026, he urged the Government to act urgently to stop the hoarding and safeguard consumers, warning that flour prices could exceed RS200 rupees per kg in the coming months if they are not controlled.
A flour mill echoes concerns about stock data, claiming that the total culture size is closer to 28 m tons. He also feared that floods in Punjab could have damaged some of the transport actions that were counted in the total government availability figures.
Asad Ali de Topline Securities said that the recent rebound of wheat price could encourage farmers in the next season of Rabi. After facing depressed yields in the previous cultivation cycle, prices recovery can increase sowing feeling.
Agricultural growth slowed 0.6pc in fiscal year 2015 from 6.4pc in the fiscal year24, since the adverse climate, the shortage of water and the increase in the costs of inputs undermined agricultural profitability. The most important crops production fell 13.5pc year after year, with wheat production decreasing by 9 percent. According to FFC estimates, farmers lost RS10,695 by ACRE this year, compared to the GS13,572 profits by Acre last season.
SBP estimates an 11pc decrease in wheat production for FY25 due to weak profitability, which discouraged planting. Asad said that although current prices of wheat remain 43pc below the anterior peak of RS1,256 by 10 kg, the last price increase offers some relief to farmers in difficulties.
He added that the current rebound can help restore confidence in wheat cultivation, provided that the Government guarantees better regulation and market protection for farmers.
Posted in Dawn, September 2, 2025
