Following Sugar Crisis, Wheat and Flour Prices Skyrocket

Wheat and flour prices are increasing at an alarming pace, with the cost of wheat rising by Rs. 300 in just the past week to Rs. 3,100 per 40kg (maund). Wheat has become nearly Rs. 1,000 costlier per 40kg, while flour prices have risen by around Rs. 500 per 20kg bag over the past month. The sudden hikes have sparked widespread concern among consumers and traders alike, with many attributing the volatility to the Punjab government’s abrupt decision to withdraw from regulating the wheat market. Critics argue the move has created space for hoarders and speculators to manipulate prices, further fueling inflationary pressure on staple foods. Pakistan Flour Mills Association (PFMA) Chairman Asim Raza admitted that the government is struggling to maintain stability in the wheat market. He cautioned that rising wheat costs will inevitably push flour prices higher in the coming weeks. Progressive Flour Millers Group (PFMG) Chairman Khaliq Arshad said dwindling reserves are a key factor behind the upward trend. “Punjab’s estimated reserves of 2.5 million tonnes, in both public and private stocks, are simply not enough to sustain demand until April 2026,” he said. Arshad further warned that without corrective measures, prices will continue climbing, leaving wheat imports as the only viable option to bridge the supply gap. Arshad also pointed to speculative activity in the market, noting that wheat prices briefly touched Rs. 3,250 before easing back to Rs. 3,100 as traders began releasing stored grain into circulation. PFMG President Majid Abdullah noted that stakeholders are closely watching the situation amid concerns over its impact on the wider food market. He revealed that the Punjab government’s notification capping wheat at Rs. 2,900 per 40kg and flour at Rs. 1,750 per 20kg bag is no longer being implemented. According to him, strong market forces are now driving demand, supply, and prices, leaving many puzzled by the sudden shift.