Karachi Wholesale Wheat, Flour Prices Surge Amid Rising Food Inflation Concerns
KARACHI: Wheat and flour prices have jumped sharply in Karachi’s wholesale markets, raising concerns about food inflation despite government assurances of adequate national stocks.
Wholesale wheat now trades at Rs90 per kg, up from Rs72 in mid-August and Rs62 in July. This surge has pushed the price of flour no. 2.5 to Rs97 per kg and fine flour to Rs103 per kg, compared with Rs81 and Rs85, respectively, in early August. Chakki flour varieties are now priced between Rs110 and Rs135 per kg, marking an average increase of Rs20 per kg.
The Sensitive Price Index (SPI) for the week ending August 28 shows a 10kg wheat bag climbing to Rs794 from Rs640, while 20kg wheat flour bags are now sold for Rs1,700–2,100. One kg of fine flour costs Rs106, up from Rs93 in early August. Analysts warn that retail bread prices may rise soon, adding pressure on consumers.
Despite these market trends, National Food Security Minister Rana Tanveer Hussain last week claimed Pakistan’s wheat stocks are sufficient, with 33.47 million tonnes against a requirement of 33.58 million tonnes. He ruled out imports, saying the situation was under control.
However, market stakeholders dispute these figures. Karachi Wholesalers Grocers Association Chairman Rauf Ibrahim said actual wheat production is closer to 29–30 million tonnes, with 3–4 million tonnes already diverted for livestock feed. He criticized the government’s suspension of wheat procurement and removal of the support price under the IMF programme, saying it created a free-market environment favoring hoarders and flour millers, not consumers.
Ibrahim warned that flour prices could exceed Rs200 per kg if hoarding continues and urged urgent government action. A flour miller added that flooding in Punjab may have damaged some carryover stock, further reducing available supply.
Analyst Asad Ali of Topline Securities said the price rebound may boost farmer confidence for the next Rabi season after losses in the previous cycle. Wheat production declined 9% in FY25, and farmers reportedly lost Rs10,695 per acre compared with profits of Rs13,572 per acre last season.
While the recent price spike brings some relief to farmers, experts stress that government intervention and better market regulation are essential to stabilize prices and protect consumers.
