Karachi Flour Prices Hit 170 Rupees per Kg, Defying Government Caps
Flour prices in Karachi have moved well above official ceilings, with fine flour selling at 160-170 PKR per kilogram against a government cap of 135. Millers reject the mandated rates, citing sharp increases in wheat costs. According to The Express Tribune, the widening gap is deepening fears of a supply crisis.
Karachi flour prices break away from official caps
A dispute over flour pricing in Pakistan has intensified, with the gap between government-mandated rates and actual retail prices deepening a supply crisis in Karachi. According to The Express Tribune, the growing divergence between official prices and prevailing market rates is heightening fears of a flour supply shortage in the city.
Official ceilings set by the administration
The Karachi administration announced revised retail prices for flour. Under the notification, general (standard) flour was fixed at 125 Pakistani rupees (PKR) per kilogram, fine flour at 135 PKR per kilogram and chakki flour at 145 PKR per kilogram.
At the wholesale level, the notification set general flour at 122 PKR per kilogram and fine flour at 132 PKR per kilogram, while chakki flour was kept at 145 PKR per kilogram.
- General flour: 125 PKR/kg retail, 122 PKR/kg wholesale
- Fine flour: 135 PKR/kg retail, 132 PKR/kg wholesale
- Chakki flour: 145 PKR/kg both retail and wholesale
Millers reject the government rates
Industry representatives have refused to comply with the official rates, arguing that they do not reflect the sharp increase in the cost of wheat. Despite the administration's notification, flour continues to sell at markedly higher prices across Karachi.
According to the reports, general flour is selling at between 145 and 150 PKR per kilogram, while fine flour is available at between 160 and 170 PKR per kilogram, well above the mandated ceilings.
Implications for supply and trade
The standoff leaves fine flour trading as much as 35 PKR per kilogram above its official retail ceiling, with general flour running up to 25 PKR above its cap. Industry has tied its refusal to rising wheat costs, the key input for milling. In a market where wheat and flour are dietary staples, a persistent gap between administered prices and production costs risks driving supply out of official channels and toward informal trade, tightening availability in Karachi. The dispute underscores how price controls struggle to hold when the underlying cost of wheat climbs, and it keeps pressure on Pakistan to secure affordable grain, whether from domestic stocks or imports, to stabilise the flour market.
