'Uncontrolled' wheat mafia blamed for Hyderabad price surge

HYDERABAD: Wheat prices in Hyderabad’s open market have climbed sharply over the past five days, prompting concerns that flour rates could rise again across Sindh amid allegations that hoarders and influential traders are operating without effective government checks.

According to the reported market figures, a 100-kilogram wheat bag was selling for Rs11,800 in Hyderabad on Sunday, compared with Rs11,100 a week earlier, marking an increase of Rs700 in five days. Flour is currently being sold at Rs44 per kilogram in most parts of the city, and traders say higher wheat costs are likely to push retail flour prices up further.

Market sources said the Sindh Food Department has not achieved its wheat procurement target this year, while the provincial government and the department have failed to curb hoarding and speculative buying. They alleged that wheat is being sold in the open market at rates set by the hoarders, with the added burden ultimately passed on to consumers through costlier flour.

Traders further claimed that powerful groups involved in the wheat trade, along with investors connected to the business, have stored large quantities of wheat in warehouses in Hyderabad and nearby districts. They alleged that officials are aware of these stocks but that no action has been taken because of official backing enjoyed by those involved.

Association raises alarm over stocks and procurement

The Hyderabad Flour Mills Owners Welfare Association said the price of a 100-kilogram wheat bag stood at Rs7,800 three months ago when the new crop arrived in Sindh, but has since risen by Rs4,000 per bag. The association linked the increase to hoarding and to what it described as the Food Department’s failure to purchase wheat in sufficient quantities.

Association General Secretary Haji Najamuddin Chohan said the body has repeatedly written to the prime minister and the Sindh chief minister, urging them to allow wheat imports to avert a wider shortage. He said the association had been warning the authorities about the developing situation and asking for imports to prevent a crisis, but had received no response from either government, which he said had further encouraged the wheat mafia.

Chohan also said the Food Department Sindh is facing serious problems in meeting the government’s target of procuring 1 million metric tons of wheat. According to the association, Hyderabad’s three main warehouses — Sasso Godown at Hala Naka Bypass, Pasco Godown at SITE and Qasim Road Godown — can hold between 500,000 and 600,000 bags. It said only 1,800 to 2,000 government-procured bags are currently stored there, which Chohan cited as evidence that wheat had been bought cheaply from farmers and hidden by private players.

Hyderabad market seen as price benchmark

Market insiders said Hyderabad’s open market often acts as an early indicator for wheat pricing in the rest of Sindh. According to them, when wheat rates rise first in Hyderabad, Karachi usually follows, with other cities in the province seeing increases afterward.

A flour mill owner, who asked not to be named, said retail flour prices do not always go up immediately after wheat becomes more expensive because mill owners typically keep enough wheat in stock for several days of production.