Imported wheat fails to cut flour prices

KARACHI experienced a price drop in the open market for imported wheat on October 28 when the first ship carrying 51,000 tonnes arrived. However, the same consumers who benefited from lower wheat prices are still paying exorbitant costs for flour and Roti. Millers initially increased the prices of various flour varieties by Rs20 per kilogram, but they lowered them before the arrival of the shipment.

Despite the reduced flour prices, consumers continue to bear high costs for Chapati, Naan, Sheermal/Taftaan, and Qulcha. The high price of liquefied petroleum gas (LPG) at Rs500-550 per kilogram is eroding the benefits of lower flour prices, making it difficult for tandoor owners to maintain their businesses if LPG prices continue to rise.

The regulator has failed to control the inflated retail prices, and import of 750,000 tonnes of wheat may not be enough to bridge the demand-supply gap as the new crops in Sindh and Punjab will only arrive between March and May. The disparity in flour prices is most significant in Karachi and Hyderabad. A 20kg bag of flour in Karachi costs up to Rs3,540, while the average price in other parts of the country is Rs3,200.

The same bag in Hyderabad ranges between Rs3,360 and Rs3,400. In Islamabad, Rawalpindi, Lahore, and other major Punjab cities, prices vary between Rs2,200 and Rs3,333. In terms of wheat rates, Sukkur leads with a 10kg bag priced at Rs1,488, while Peshawar is second with Rs1,469. Hyderabad follows closely with a rate of Rs1,453. Karachi and Islamabad have the lowest rate of Rs1,440 and Rs1,453 per 10kg bag, respectively.

Fine Atta prices in Hyderabad and Quetta are the highest at Rs187 and Rs185 per kg, respectively, while in Islamabad, the price is Rs183 per kg. Other cities have an average fine flour price ranging between Rs147 and Rs180 per kg.