Wheat, vegetable prices surge as market disruptions continue

After over a year of price stability driven by declining interest rates and encouraging economic indicators, consumers are now facing rising prices for wheat and related products. The wheat crop, although harvested in March, came in below expectations, contributing to growing concerns. Traders warn that wheat consumption in the livestock and poultry sectors has added to the supply pressure, as a significant amount of wheat has been diverted for animal feed. In addition, recent heavy rains, particularly in Karachi and the upcountry, have exacerbated the supply-demand imbalance for vegetables, leading to higher prices at markets. As per the latest data from the Sensitive Price Index (SPI) for the week ending Aug 21, the price of a 10kg wheat bag in Karachi has risen to Rs660, up from Rs640 at the start of August. Similarly, the cost of one kilogram of fine flour has increased to Rs95 from Rs93. The 20kg wheat flour bag now costs between Rs1,500 and Rs1,800, compared to Rs1,350 to Rs1,700 earlier this month.