Pakistan's wheat and flour markets have seen prices surge despite the Pakistan government's promises of adequate national supply, raising concerns about inflation and availability.

Wholesale wheat is selling for 0.32 USD per kg, up from 0.26 USD in August and 0.22 USD in July. The raised prices have increased the price of flour 2 to 0.34 USD per kg and fine flour to 0.37 USD, up from 0.29 USD and 0.30 USD respectively. Chakki flour is selling at prices between 0.39 USD and 0.48 USD per kg, having increased by an average of 0.07 USD per kg. 

Rising flour prices are expected to put further financial strain on customers once bread sellers raise their prices to reflect higher supply costs. The average Pakistani wage is currently around 296 USD.

Prices have surged despite a recent statement by Pakistan National Food Security and Research Minister Rana Tanveer Hussain, who claimed the nation had 33.47 million tons of the required 33.58 million tons of wheat, and that the 0.11 million ton deficit was of no concern. He stated that Pakistan would not require wheat imports, assuring that existing stocks were sufficient to supply the nation.

Pakistani market shareholders disagree with the 33.47 million ton estimate. Chairman of the Karachi Wholesalers Grocers Association, Rauf Ibrahim, commented that the figure includes 400,000-500,000 tons from the previous year's leftover stock. The actual crop size is closer to 30 million tons this year, with up to 4 million tons having already been distributed for livestock feed, according to Ibrahim.

Ibrahim also aimed criticism at the Pakistan government's decision to suspend the support price provided by the United Nation's International Monetary Fund program at the expense of consumers. Additionally, he questioned the decision to remove official quotas from flour millers, concerned that farmers who sold their wheat at 0.20 USD per kg are facing a loss while local flour millers store the grain in private silos to attempt to game the market.

The next wheat crop in Pakistan is due in March/April of 2026. Ibrahim urged the government to reinstate or replace safeguards against hoarding and consumer price issues, warning that flour prices could exceed 0.71 USD in months.

A Pakistani flour miller also had concerns about the stock estimate, fearing that flooding in Punjab damaged some of the previous year's harvest that was counted in the government's assessment. He estimates the total crop this year as closer to 28 million tons.

This article was sourced from Dawn E-Paper, a Pakistani news source.