Hyderabad wheat price surges to record high on quota delay
The price of a 100-kilogram bag of wheat in Hyderabad has surged to a record Rs13,100, marking a Rs600 increase in just two days. This sharp rise has sparked concerns that flour prices could soon exceed Rs160 per kilogram. Flour millers and chakki owners blame the delay in the release of the government wheat quota for the spike, suggesting that continued price hikes in the open market could push flour prices to Rs170 per kilogram.
Market sources report that the price of a 100kg bag of wheat was Rs12,500 on Saturday, jumped to Rs12,800 on Sunday, and further increased to Rs13,100 on Monday. Traders describe this as the highest price ever recorded in the open market. Flour mills and chakki owners are currently buying wheat from the open market due to the delayed government quota, which has already driven up flour prices. Wholesale rates for flour are around Rs155 per kilogram, while retailers charge approximately Rs160 per kilogram.
The Sindh government has announced a policy for releasing wheat stocks from government warehouses, but the official price has yet to be determined. The provincial cabinet initially set October 1 for the release but later pushed it to October 20. Flour-chakki owners claim the delay has allowed traders and hoarders to manipulate wheat prices, directly impacting consumers. They also point out that the cost of producing one kilogram of flour is around Rs35, but the deputy commissioner has approved only Rs24 as the cost component for pricing.
Haji Muhammad Memon, president of the Flour Chakki Owners Social Welfare Association, alleges an artificial shortage of wheat in Hyderabad’s open market. He warns that even at Rs13,100, wheat is difficult to obtain and that hoarders could drive prices even higher. Memon urges Sindh Chief Minister to ensure the immediate release of the government wheat quota, cautioning that continued shortages could lead to further increases in flour prices across Hyderabad and other parts of interior Sindh.