Imported Wheat Arrives in Pakistan but Flour Prices Stay High for Consumers

The arrival of imported wheat in Pakistan has brought down grain prices in the open market, yet consumers are still paying elevated rates for flour and baked goods, as retail prices have stayed largely flat despite recent cuts at the mill level. The first shipment of 51,000 tonnes of imported wheat reached Karachi Port on October 28, pulling open-market wheat prices down to Rs 130 per kilogram from Rs 140. A second vessel carrying 58,132 tonnes is due to arrive on Tuesday, November 3.

Wheat rates have nonetheless remained volatile. Wholesalers quoted an average of Rs 132 per kg, while flour millers reported prices ranging between Rs 136 and Rs 137 per kg. Millers had raised prices of various flour varieties by Rs 20 per kg before rolling them back ahead of the imported wheat's arrival, with one miller noting that mills cut rates on October 28, two days before the shipment docked.

Current mill prices for flour No. 2.5, maida and fine flour stand at Rs 156, Rs 168 and Rs 171 per kg respectively, down from Rs 161, Rs 173 and Rs 176 per kg in the first week of October. Those reductions have not reached store shelves: flour No. 2.5 and maida are still selling at Rs 170 to Rs 180 and Rs 185 to Rs 190 per kg, while fine flour is priced at Rs 185 to Rs 190 per kg.

Bakery and tandoor items have also held steady, with chapati at Rs 20, naan at Rs 30 to Rs 35, sheermal at Rs 100 to Rs 110 and taftaan at Rs 90 to Rs 100. A tandoor owner said the high cost of liquefied petroleum gas, which ranges from Rs 500 to Rs 550 per kg, has offset any benefit from cheaper flour, and warned that further LPG increases could make it hard for tandoor operators to stay in business.

Wholesaler Rauf Ibrahim said regulators have failed to control inflated retail prices despite the decline in open-market wheat rates. He also cautioned that the planned import of 750,000 tonnes of wheat will not be enough, as Pakistan needs more than 2 million tonnes to bridge the supply-demand gap until the next crop arrives from Sindh and Punjab between March and May. Ibrahim urged the government to allow private companies and flour millers to import wheat to help stabilise flour prices, adding that workers earning less than Rs 50,000 a month are struggling to cover food costs, leaving little for their children's education and other needs.

According to the Sensitive Price Index for the week ending October 29, Karachi and Hyderabad have the highest flour prices among major cities. A 20kg flour bag costs up to Rs 3,540 in Karachi, compared with an average of Rs 3,200 elsewhere in the country, while in Hyderabad the price ranges from Rs 3,360 to Rs 3,400.