Karachi Markets Shut Amid Flour Price Dispute, Millers Seek Imports
At a glance
- Flour millers urge immediate wheat import permission to stabilize prices and prevent shortages.
- Wholesale grocery markets in Karachi are shut down due to a traders' strike against administrative clampdown on flour prices.
- Traders cite conflicting government price directives and allege unfair targeting by authorities.
Story so far
Flour prices have seen a significant increase, with the price of a 20 kg bag of flour rising by 500 rupees over the last week to reach up to 3000 rupees in some areas. In response to continuous price increases, flour mill owners have reportedly not increased the price of roti but have instead reduced its weight. Reports from Punjab indicate that disruptions in the transportation of wheat and flour from Punjab are causing shortages and price hikes in the province.
Latest development
Wholesale grocery markets across Karachi remained completely shut on Wednesday as traders suspended business and halted supplies in protest against an administrative clampdown on wheat flour prices. Flour millers have also attributed recent price spikes to delays in government procurement and are urging immediate permission to import wheat.
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Flour millers have attributed the recent spike in wheat and flour prices to delays in government procurement and have called for immediate permission to import wheat to prevent shortages and stabilize prices. A leading miller, Yasir Iqbal Malik, stated that the flour milling industry and FPCCI had repeatedly warned the government to begin procurement on time and take effective measures against wheat hoarding. He welcomed recent government actions for price stability but noted they should have been implemented earlier. Malik emphasized that enforcement efforts should target private warehouses and industrial units where wheat is allegedly stockpiled, rather than flour mills, which are permitted to maintain stocks for up to 30 days.
Separately, wholesale grocery markets across Karachi remained completely shut on Wednesday after traders suspended business and halted supplies of essential commodities in protest against an administrative clampdown on wheat flour prices. The protest, organized by the Karachi Wholesalers Grocers Association (KWGA), brought commercial activity to a standstill in major wholesale markets. KWGA Chairman Abdul Rauf Ibrahim accused the administration of targeting wholesalers and retailers through raids, arrests, heavy fines, and sealing shops, instead of taking action against flour mills. He alleged that traders were fined without official challans and highlighted conflicting government instructions on flour prices, with the Karachi commissioner fixing the wholesale price at Rs122 per kilogram and the Sindh chief secretary at Rs130 per kilogram. Ibrahim argued that wholesalers only add a reasonable profit margin and should not be held responsible for higher retail prices, urging the government to act against flour mills.
Traders have announced a strike in response to a crackdown amidst the deepening flour crisis.
In Karachi, tandoor owners have raised the prices of naan, impacting the public due to rising costs.
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