Wheat and Flour Prices Surge Across Punjab Amid Market Volatility
August 27, 2025
Wheat and flour prices are rising sharply, sparking concern among consumers and traders. The cost of wheat has jumped by Rs. 300 in just one week, reaching Rs. 3,100 per 40kg (maund), while flour prices have increased by around Rs. 500 per 20kg bag over the past month.
Experts say the price surge is linked to the Punjab government’s recent decision to withdraw from regulating the wheat market, which has created opportunities for hoarders and speculators to influence prices.
Market Concerns and Rising Costs
Pakistan Flour Mills Association (PFMA) Chairman Asim Raza acknowledged that maintaining stability in the wheat market is challenging and warned that rising wheat costs will likely push flour prices higher in the coming weeks.
Progressive Flour Millers Group (PFMG) Chairman Khaliq Arshad cited dwindling reserves as a major factor. “Punjab’s estimated reserves of 2.5 million tonnes, in both public and private stocks, are not enough to sustain demand until April 2026,” he said. Arshad added that without corrective measures, prices could continue to rise, potentially forcing reliance on wheat imports.
Speculative activity has also contributed to fluctuations, with wheat prices briefly touching Rs. 3,250 before easing back to Rs. 3,100 as traders released stored grain.
Impact of Policy Changes
PFMG President Majid Abdullah noted that the Punjab government’s price caps—Rs. 2,900 per 40kg for wheat and Rs. 1,750 per 20kg for flour—are no longer being enforced, leaving supply and demand to dictate prices. “Strong market forces are now driving the wheat and flour market, creating uncertainty for consumers,” he said.
With market volatility continuing, stakeholders are closely monitoring developments, emphasizing the need for measures to stabilize prices and ensure affordable access to staple foods.
