Flour crisis looms over the city

A widening gap between official and market prices of flour has raised fears of a supply crisis in Karachi after the city administration fixed new retail rates despite a sharp rise in wheat prices in the open market.

The Karachi commissioner has issued a notification fixing the official retail price of regular flour at Rs125 per kilogram, fine flour at Rs135 per kilogram and chakki flour at Rs145 per kilogram. However, flour millers and chakki owners have rejected the rates as economically unviable, arguing that soaring wheat prices have pushed production costs well above the government's prescribed prices. According to the notification, the wholesale price of regular flour has been fixed at Rs122 per kilogram and fine flour at Rs132 per kilogram, while chakki flour has been capped at Rs145 per kilogram.

Despite the official rates, market prices remain significantly higher. Regular flour is currently selling between Rs145 and Rs150 per kilogram, fine flour between Rs160 and Rs170 per kilogram, while chakki flour is being sold at around Rs160 per kilogram across the city.

Flour Mills Association Chairman Junaid Aziz warned the Sindh Food Department that mills could not purchase wheat at prevailing market rates and sell flour at government-fixed prices. He said wheat in the open market had climbed to Rs116 per kilogram and prices continued to fluctuate daily, making the notified rates unsustainable.

Aziz said the official pricing mechanism only worked when the govt supplied subsidised wheat to mills.