HYDERABAD: The wheat price in the open market increased abruptly on Tuesday as the provincial government suddenly changed its policy regarding release of the commodity to roller flour mills and chakkies.
The increase is bound to push up prices of wheat flour of different quality and variants for consumers.
“Until Friday [Jan 2], wheat had been selling at Rs9,500 to Rs9,600 per 100kg, but today [Jan 6] its price has increased to Rs10,500 to Rs11,100 a 100kg bag,” said a chakki owner.
The increase has been effected through a Jan 6 notification, which also revises government’s wheat release policy.
Quota for chakki owners slashed, roller flour mills increased under fresh notification; a minimum of Rs1,000 per 100kg hike to be effected
As per the previous (December 2025) notification, chakki owners in Hyderabad division were to be provided 10,000 tonnes of wheat out of the 2023 crop and another 10,000 tonnes from the 2024 crop. This quota has now been slashed from 20,000 tonnes to 10,000 tonnes under the Jan 6 notification.
However, roller flour mills, whose quota was 40,000 tonnes (30,000 tonnes from the 2023 crop and 10,000 from the 2024 crop), would now be getting 50,000 tonnes, according to the new notification.
The government had only lately reduced its wheat release price from Rs9,500 to Rs8,000 per 100kg bag with provincial cabinet’s approval, but at the same time, it had decided to issue wheat stocks to traders as well, besides roller flour mills and chakki owners.
The price had to be revised downward on food department’s recommendation because the commodity was available to the millers and chakki owners at a lesser rate in the open market. They did not find a justification buy expensive wheat from the food department, and that too through a cumbersome process.
Food dept’s older stocks
The food department is releasing older wheat crops stocked in its godown. This year’s procurement will begin by late March or early April when wheat is harvested.
Chakki owners claim that they are being asked to pay an additional amount of Rs1,000 per bag as ‘gratification’. If we don’t, we will be provided damaged or adulterated stocks, they say.
Chakki owners had last year decided not to lift their wheat quota fixed for them in December 2025. As a result, this old crop is likely to be supplied to traders for Rs8,000 per 100kg bag. This could enable traders to offer the wheat in the open market to chakki owners at Rs10,500 per 100kg and even a higher rate.
Chakki owners’ grievance
“It’s great injustice to us. We are being asked to pay bribe for the release of our quota. Secondly, our quota has been reduced from 20,000 tonnes to 10,000 tonnes,” said Haji Mohammad Memon, President of the Atta Chakki Owners Social Welfare Association, Hyderabad, on Tuesday. “We will be holding our meeting soon to decide a future course of action,” he added.
Rate for consumers
Market players appeared sure that flour price, which is Rs120-Rs122 per kilo will go up to Rs135 per kg soon on account of the increase in wheat release price.
This surge is also attributable to the fact that the food department is also issuing wheat to traders and they have lifted a considerable tonnage of the commodity.
“Since traders have stocked the crop and somehow obtained better quality crop, they are going to monopolise the market,” said a chakki owner.
Sindh government had not procured wheat crop in 2024-25 due to the conditions attached to a loan programme by the International Monetary Fund (IMF).
An announcement for wheat procurement this year has already been made by the Sindh chief minister. Therefore, the food department wants to dispose of its carryover stocks which also include damaged crop of 2022-23 when heavy rainfall had battered Sindh.
Around 0.4m tonnes of wheat from the 2022-23 season is available with the food department. Published in Dawn, January 7th, 2026