Wheat pricey despite bumper crop

The Express Tribune reported that Karachi wholesale wheat prices have climbed sharply over recent months. A kilogramme (kg) that traders sold for Rs90 four months ago now fetches Rs132, a rise of Rs42. Wholesale 2.5 flour has gone up Rs55 to Rs155 per kg, while chakki flour now costs Rs180 per kg.

Kisan Ittehad chairman Khalid Hussain Batth says a 50-kg bag of flour is selling for up to Rs8,000 in some areas. Rauf Ibrahim, chairman of the Wholesale Grocers Association, points to deregulation last year and no fixed support price for growers. He warned that 750,000 tonnes planned through the Trading Corporation of Pakistan can only arrive in November, and until then hoarders will keep pushing atta prices higher.

Louis Dreyfus Company (LDC) started operating a 40,000-tonne grain facility in Multan on September 2, the first industrial site it owns in Pakistan. LDC country head Muhammad Danyal says sellers often accept around $270 a tonne instead of about $290 for comparable wheat, because buyers price quality risk. He argues that logistics investment serves suppliers and buyers, supports a sturdier grains chain and creates local jobs.