Wholesale flour prices plunge following wheat price drop

In Karachi, Pakistan, various types of flour have seen a decline in wholesale pricing due to a significant reduction in wheat prices. Specifically, the price of flour No. 2.5 dropped from Rs80 to Rs67 per kilogram, while the fine flour price decreased from Rs84 to Rs76. This change, noted by Rauf Ibrahim, Chairman of the Karachi Wholesalers Grocers Association, underscores the impact of lower wheat costs on the flour market. Despite this decrease, many retailers have not adjusted their prices accordingly, still charging higher rates, such as Rs100 per kg for flour No. 2.5 and Rs110 for fine flour. Some retailers have shown a willingness to cut prices modestly by Rs10 per kg, settling at Rs90 and Rs100 for their flour varieties, respectively. However, these prices continue to be significantly higher than wholesale levels. The Pakistan Flour Mills Association, with Aamir Abdullah as a central executive member, attributed the decline in flour prices to a drop of Rs15 per kg in wheat prices. While the wholesale rates for flour have fallen, the prices of bread products like Chapati and Tandoori Naan remain unchanged at fixed rates. For instance, standard prices stand at Rs10 for a Chapati and go as high as Rs23 for larger Tandoor Naan varieties. This situation highlights the disconnect between wholesale price adjustments and retail prices, which can directly affect consumers. The ongoing disparity in pricing raises questions about market practices among retailers and the transparency in price adjustments. Retailers have significant influence over final consumer prices, and the reluctance to lower prices to reflect wholesale reductions is concerning for consumers. As many households continue to feel the pinch of higher food prices, the impacts of the reduced flour prices on daily life and food budgets become evident. The Karachi market illustrates the broader economic challenges faced in food distribution across Pakistan and the need for clearer guidelines on price fairness in the flour supply chain. Ultimately, consumers hope for more equitable pricing that accurately reflects wholesale reductions, ensuring that the benefits of falling wheat prices translate into affordable flour for everyday use.