Wheat Prices Surge in Hyderabad Sparking Flour Cost Fears

Hyderabad is facing a sharp rise in wheat prices, sparking fears of a significant impact on household budgets. A 100-kilogram bag of wheat has surged to a record high of Rs13,100 in the open market, up from Rs12,500 just two days earlier. This rapid increase has already pushed flour prices to around Rs155 per kilogram at wholesale and Rs160 per kilogram at retail, with concerns that prices could soon reach Rs170 per kilogram if wheat costs continue to climb.

The delay in releasing government wheat quotas is exacerbating the situation. The Sindh government had initially planned to release wheat stocks from October 1, but the date was later pushed back to October 20. This delay has forced flour millers and chakki owners to rely on the more expensive open market, where hoarders and profiteers are taking advantage of the supply gap.

Chakki owners warn of an artificial shortage in the open market, with wheat becoming difficult to obtain even at the current high price. They argue that the government's approved cost component for flour production is too low, further straining the market. The immediate demand from flour-chakki owners is for the government to release the wheat quota without delay and take measures to prevent hoarding.

Consumers are already feeling the pinch, as a slight increase in flour prices could translate into a significant leap in monthly household costs for families that rely heavily on flour as a daily staple.