Flour prices rise sharply in Karachi despite bumper crop, lower diesel rates

KARACHI: Flour prices in Karachi have continued to climb even after the arrival of the new wheat crop and a steep drop in diesel prices, with millers increasing rates for several flour varieties by Rs30 to Rs38 per kilogram since March.

According to the Economic Survey FY26, wheat production increased by 4.3 per cent to 29.61 million tonnes from 28.40 million tonnes a year earlier. Despite that increase and lower transport costs, consumers in the city are still facing repeated price hikes. Millers have linked the latest rise to higher wheat prices in the open market.

On Saturday, millers set the price of Flour No. 2.5 at Rs6,725 per 50kg bag, a 10kg flour bag at Rs1,335, super fine flour, or maida, at Rs7,100 per 50kg bag, and fine flour at Rs7,250 per 50kg bag. These rates were up from Rs6,300, Rs1,270, Rs6,600 and Rs6,750, respectively, on June 20.

Prices had already been moving upward in previous weeks. In mid-May, a 50kg bag of Flour No. 2.5 was selling for Rs6,000, a 10kg bag for Rs1,210, maida for Rs6,200 per 50kg bag and fine flour for Rs6,400 per 50kg bag. In the last week of April, those rates stood at Rs5,600, Rs1,130, Rs5,800 and Rs6,000, respectively. On March 25, the same products were priced at Rs4,800, Rs970, Rs5,600 and Rs5,700.

Open market wheat prices cited by millers

Millers said the latest increase was driven by wheat prices in the open market. Wheat is currently selling at Rs116 per kg, compared with Rs100 on May 1 and Rs99 in the first week of March. Over the same period, diesel prices fell to Rs311.47 per litre from Rs399 on May 1.

The Sindh government moved in the first week of June to warn traders and flour mills against artificial shortages and what it described as unjustified increases in flour and bread prices. It said such practices would not be tolerated.

In mid-June, Chief Minister Murad Ali Shah ordered the immediate purchase of 200,000 tonnes of wheat from the Pakistan Agricultural Storage and Services Corporation and directed a province-wide crackdown on hoarding after reports showed the government had procured only 81,348 tonnes from the FY26 crop against a target of one million tonnes.

The provincial government had started wheat procurement on April 1 at a support price of Rs3,500 per 40kg from growers. Wheat stocks in Sindh were reported at 588,512 tonnes, including 159,577 tonnes in Karachi.

Retail prices remain above official rates

Consumers, however, have yet to see any relief. On May 12, the Karachi commissioner fixed the retail prices of Flour No. 2.5 at Rs113 per kg, fine flour at Rs121 per kg and chakki flour at Rs145 per kg. In retail markets, these rates are largely unavailable, with buyers paying around Rs150 per kg for Flour No. 2.5, Rs160 for fine flour and Rs170 to Rs180 for chakki flour.

Branded five-kilogram fine atta bags are now selling for Rs850 to Rs1,000, while the provincial and city administrations have not succeeded in controlling their prices.

The gap between official and market rates has also persisted in bread prices. On February 16, the city price regulator fixed the rates of a 100-gram chapati at Rs18, a 120-gram tandoori naan at Rs18, a 140-150 gram tandoor naan at Rs21 and a 180-gram tandoori naan at Rs27. Consumers are now paying Rs5 more for naan and Rs10 more for sheermal, taftaan and kulcha. Naan is selling for Rs30 apiece, while sheermal and taftaan are priced between Rs90 and Rs100. Chapati costs Rs20 each.

Karachi Retail Grocers Group General Secretary Farid Qureishi said the government appeared unable to stop wheat hoarding and black marketing despite the arrival of the new crop.