Flour prices surge in Karachi despite bumper crop, cheap diesel

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A file photo of workers lifting flour bags. — Dawn/File
A file photo of workers lifting flour bags. — Dawn/File

• Millers raise rates by up to Rs38 per kg since March
• Consumers paying far above official prices as crackdown fails to curb surge

KARACHI: Despite a decline in transportation costs following a sharp fall in diesel prices and the arrival of the new wheat crop in March-April, flour millers have continued to shock consumers by repeatedly raising flour prices.

Since March, millers have increased the prices of various flour varieties by Rs30-38 per kg, undermining the Sindh government’s claims of strict vigilance against flour price manipulation and wheat hoarding. The city administration, meanwhile, has largely remained a silent spectator.

According to the Economic Survey FY26, wheat production rose 4.3 per cent to 29.61 million tonnes from 28.40m tonnes a year earlier.

On Saturday, millers issued revised prices, fixing Flour No. 2.5 at Rs6,725 per 50kg bag, 10kg flour bag at Rs1,335, super fine flour (maida) at Rs7,100 per 50kg bag and fine flour at Rs7,250 per 50kg bag, up from Rs6,300, Rs1,270, Rs6,600 and Rs6,750, respectively, prevailing on June 20.

In mid-May, the prices of a 50kg bag of Flour No. 2.5, a 10kg flour bag, a 50kg bag of maida and a 50kg bag of fine flour stood at Rs6,000, Rs1,210, Rs6,200 and Rs6,400, respectively, compared to Rs5,600, Rs1,130, Rs5,800 and Rs6,000 in the last week of April.

On March 25, the prices of a 50kg bag of Flour No. 2.5, a 10kg flour bag, a 50kg bag of maida and a 50kg bag of fine flour were Rs4,800, Rs970, Rs5,600 and Rs5,700, respectively.

Millers attributed the latest increase to rising wheat prices in the open market. Wheat currently sells for Rs116 per kg, compared to Rs100 on May 1 and Rs99 in the first week of March. In contrast, diesel prices have fallen to Rs311.47 per litre from Rs399 on May 1.

In what appeared to be a belated response, the Sindh government in the first week of June put traders and flour mills on notice over rising flour and bread prices, warning that artificial shortages and unjustified price hikes would not be tolerated.

As flour prices continued to climb, Chief Minister Murad Ali Shah in mid-June ordered the immediate purchase of 200,000 tonnes of wheat from Pakistan Agricultural Storage and Services Corporation (Passco) 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 begun wheat procurement on April 1 at a support price of Rs3,500 per 40kg from growers. Wheat stocks across Sindh stood at 588,512 tonnes, including 159,577 tonnes in Karachi.

Despite these official measures, consumers have received no relief and continue to pay elevated prices for different flour varieties.

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. However, these official rates are rarely available in retail markets, where consumers are paying around Rs150 per kg for Flour No. 2.5, Rs160 for fine flour and Rs170-180 for chakki flour.

Branded five-kilogram fine atta bags now sell for Rs850-1,000, while neither the provincial nor the city government has been able to curb their prices.

On Feb 16, the city price regulator fixed the prices 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.

With little enforcement of official rates, consumers are paying Rs5 more for naan and Rs10 more for sheermal, taftaan and kulcha. Naan now sells 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 helpless in checking grain hoarding and black marketing despite the arrival of the new crop.

Published in Dawn, June 30th, 2026

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