Pakistan's Wheat Price Puzzle: Hoarding, Supply Chain Woes Continue

Pakistani households continue to pay high prices for wheat despite a strong harvest last year. The wholesale price of wheat has increased by Rs42 per kilogram, and millers and grocers are charging more for atta every month.

The country's weak supply chain and inefficient storage system contribute to the high prices. Khalid Hussain Batth, Chairman of Kisan Ittehad, says that the farmer worries, and so does the consumer, as both lose due to the high prices.

Wholesale Grocers Association Chairman Rauf Ibrahim blames last year's deregulation and the absence of a firm support price for the high atta prices. He accuses the elite of hoarding wheat and calls for an account of grain seized from homes.

The Louis Dreyfus Company (LDC) has invested in modern silos to store grain, which can help prevent moisture and pests that reduce milling value. LDC's Country Head for Pakistan, Muhammad Danyal, says that buyers often accept a $20 discount on wheat traded at $290 per tonne due to quality risk.