Wheat Price In Pakistan

Wheat remains Pakistan’s most vital staple grain—feeding households, supporting livestock, and underpinning the country’s food security and economy. Over recent years, government support prices have been withdrawn, shifting supply dynamics into the open market. This has caused wholesale and retail wheat prices to fluctuate sharply across provinces. As of mid‑2025, prices have stabilized somewhat but remain well below the cost of production, sparking concern among farmers and policymakers alike.

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Current Wheat Prices – By Region

In key grain markets across Punjab, Sindh, KPK, and Balochistan, farmers are able to sell a 40 kg bag for between PKR 2,200 and PKR 2,500. This equates to roughly PKR 55–62 per kilogram for standard-grade wheat.

Price Trends and Market Dynamics

1. Sharp Decline From Previous Year

   • In early 2024, wheat prices were nearly PKR 2,900–3,700 per 40-kg bag. The current levels reflect a significant drop tied to liberalized markets.

2. Harvest Impact

   • With around 50% of the harvest now complete in Punjab and Sindh, increased supply has driven prices downward to the current band of PKR 2,200–2,390 for Punjab and Sindh, and up to PKR 2,450 in KPK and Balochistan.

3. Cost vs. Market Price

   • Farmers are bearing losses: cost of production runs around PKR 3,200–3,400 per 40-kg, while market prices are pegged near PKR 2,200–2,500—creating profit deficits of hundreds of rupees per bag.

Why Prices Are So Low

Several key factors have pushed wheat prices below farmer expectations:

• End of Government Procurement
  Authorities have withdrawn from direct purchase of wheat following IMF-related economic restructuring, allowing open-market forces to set prices.

• Free Imports
  Removal of import restrictions introduced cheaper foreign wheat, putting additional pressure on local pricing.

• Plentiful Carryover Stock
  Surplus stocks from previous harvests increased supply, reducing the urgency to procure new crop.

• Consumer Flour Prices
  Wholesale flour is selling at PKR 67–76 per kg, yet retail outlets continue charging Rs 90–120/kg, with end consumer rates often around Rs 100–120/kg.

Impact on Stakeholders

• Farmers
  Strong vulnerability due to falling prices. They face losses despite higher input costs, and lack the government safety net to buffer price shocks.

• Millers and Retailers
  Wholesalers benefit from low wheat costs; however, except for large-scale mills, many have not passed cost savings to consumers yet.

• Consumers
  May see relief at the shelf if lower wheat prices translate into cheaper flour, chapatis, and bakery products.

• Government and Policy
  Officials are under pressure to support farmers amid protests and rising rural distress. The wheat market is now fully deregulated, leaving safety measures in limbo.

Factors Influencing Wheat Price Fluctuations

• Supply Levels
  As harvest expands, local volumes flood markets—yet sustainable farmer income is in question with current price levels.

• Regional Disparities
  Areas with low yield or high transport costs (like Balochistan, KPK) typically see prices at the upper end of the range.

• Imported Grain
  Variable import volumes affect domestic market pricing, especially when free-trade and exchange rates make imports cheaper.

• Government Policy Shifts
  Any change in export bans, import duties, or re-introduction of procurement support could rapidly shift the market equilibrium.

Storage, Milling, and Consumer Price Check

• Wholesaler vs Retail Price Spread
  Mills are paying Rs 67–76 per kg for wheat flour, while retailers are charging Rs 90–120/kg. The retail-to-wholesale spread ranges between Rs 13 and over Rs 40 per kg, affecting consumer affordability.

• Chapati and Naan Prices
  Retail wheat product prices (naan, chapati) remain pegged via official rates—e.g., 100g chapati at Rs 10, tandoori naan at Rs 18–23—leaving less scope for price cuts despite cheaper wheat.

Outlook: Will Prices Rise?

• Market Pressure
  Continued harvest influx may push prices even lower—possibly to PKR 2,000–2,200 per 40-kg—deepening farmer losses.

• Policy Reaction?
  If the government reintroduces procurement or subsidies, prices could stabilize at PKR 2,800–3,100/40 kg.

• Import Controls
  Reinstating import policies may reduce downward pressure and support domestic prices.

• Global Market Influence
  International wheat demand and global commodity pricing also play a role; approaching harvests abroad can sway local rates.

What Consumers Should Know

• Lower wheat costs may feed into cheaper flour and bread, but only if retailers pass on the benefits.

• Baking staples like atta and baked goods haven’t yet seen full price relief at the end-point.

• For housewives, bakers, caterers, or flour-based businesses, this presents an opportunity—but vigilance is needed.

What Farmers Should Consider

• With production costs exceeding current prices, farmers should demand policy intervention—either via guaranteed procurement or input subsidies.

• Improved storage and direct miller partnerships may reduce middleman margins.

• Regional advocacy and collective bargaining might support better price outcomes.

Conclusion

Wheat prices in Pakistan as of July 2025 hover between PKR 2,200 and 2,500 per 40 kg bag, or PKR 55–62 per kilogram. This marks a significant drop from previous seasons, largely due to market deregulation, import influx, and carryover stocks. The current prices favor consumers and millers, while squeezing farmers whose cost of production ranges between PKR 3,200 and 3,400 per bag. Unless policy or market interventions occur, prices may fall further, threatening rural livelihoods.

FAQs

1. Why is wheat price down so much?
Because the government has stopped procurement, prices dropped as markets flooded with harvest. Import activity and carryover stocks made it worse.

2. What’s the current per-kg price?
Most markets quote PKR 55–62 per kg, while wholesale flour ranges from PKR 67–76/kg. Retail flour still sells around PKR 90–120/kg.

3. Will this affect bread prices?
It could—if millers pass savings to consumers. But regulators must ensure pricing transparency to benefit households.

4. Farmers: what now?
They’re lobbying for support pricing, legal procurement, or at least import curbs to boost their income.