A few days ago, the flour mills were on strike in all major cities of the Country. This strike resulted in a major increase in the price of Wheat across the country. According to a local news report1, the price of 40 KG of Gandum saw an increase of up to 300 PKR.
Find out how we find the latest Rates.
Gandum Ka Rate Today:
The old rate of 40 Kg Sack of Wheat is PKR 2800-2850 as announced by the Government of Pakistan in April 2024.
The Gandum Rate rose to PKR 3400 per 40 KG due to recent strikes by Flour Mills associations.
“Today, the 40 KG Wheat Rate in Pakistan is PKR 2850-2950, After Confirming this with major Wheat markets and Ghalla Mandi in Pakistan.”
Some Mandis Confirmed that Gandum was sold at PKR 3000-3150 as of 17th July 2024.
Wheat Rate Forecast:
Wheat prices in Pakistan fluctuate on a daily basis. According to experts in the field, the recent strike of Flour mills badly affected the rates.
Now that the strike is at an end and if the government agrees to the terms of Flour Mills associations, the price is expected to remain steady at PKR 2800-2950.
If the demands are not met, the price will rise again.
other factors that impact the price of wheat in Pakistan are given below, followed by some facts and figures related to Wheat production in Pakistan.
Factors influencing the price of Wheat:
The price of wheat in Pakistan is influenced by a variety of factors. Here are ten key factors:
1. Supply and Demand: The balance between wheat production and consumption directly affects prices. A surplus leads to lower prices, while a shortage pushes prices up.
2. Weather Conditions
3. Input Costs: The cost of inputs such as seeds, fertilizers, pesticides, and labor affects the overall cost of wheat production.
4. Government Policies: Policies such as subsidies, support prices, import/export restrictions, and tariffs can significantly influence wheat prices.
For example, a government-set support price can set a floor for market prices. The Government Support price for the Current year 2024-2025 is PKR 3900 for a 40 KG sack of Wheat.
5. Global Market Trends: International wheat prices and global supply and demand dynamics can affect local prices, especially if Pakistan imports or exports wheat.
6. Currency Exchange Rates: Fluctuations in the value of the Pakistani rupee against other currencies can affect the cost of importing wheat and agricultural inputs, thereby influencing prices.
7. Storage and Transportation: Efficient storage and transportation infrastructure reduce post-harvest losses and transportation costs, affecting the final price of wheat.
While most of the wheat transport is dependent on large vehicles that use gasoline, and prices of Petrol and diesel are on the rise in the Courtry, Wheat Rates are expected to be higher.
8. Inflation: General inflationary trends in the economy can lead to higher prices for wheat and other essential commodities. The inflation rate in Pakistan is expected to rise2, and this also affects the price of Wheat.
9. Speculation and Hoarding:
10. Technological Advancements
A few facts about Wheat in Pakistan: (facts up to 2023)
Domestic Production Levels: Pakistan’s wheat production was estimated at 26.2 million tonnes in 2022, which fell short of the annual consumption of around 30 million tonnes (Al Jazeera). For 2024, projections suggest a bumper crop of 32 million tonnes, yet surplus stocks and government buying policies create market imbalances (Al Jazeera).
Imports and Export Policies: In recent years, Pakistan has allowed private sector imports to mitigate shortfalls, importing over 3.5 million tonnes from September 2023 to March 2024 (Al Jazeera).
Government decisions to ban state-level imports to stabilize prices are also crucial (Profit by Pakistan Today).
Government Procurement and Storage: The government’s procurement strategy impacts market prices. For 2024, the government plans to purchase only 2 million tonnes from local farmers, significantly less than in previous years, leading to potential financial losses for farmers (Al Jazeera).
Climate and Natural Disasters: Natural events such as the devastating floods in 2022 have had significant impacts on wheat production, causing shortages and price spikes (Al Jazeera).
Population Growth and Consumption: With one of the highest population growth rates globally, Pakistan’s demand for wheat continues to rise, necessitating increased production or imports to meet consumption needs (World Grain).
Cost of Production: Rising costs of inputs like fertilizers and water also affect wheat prices. Increased production costs force farmers to sell at higher prices to cover expenses, impacting overall market prices (Al Jazeera).
Inflation and Economic Conditions: High inflation rates, which peaked at nearly 38% in May 2023, affect purchasing power and overall market stability, influencing wheat prices (Al Jazeera).
International Market Prices: Global wheat prices and the cost of imports from major suppliers like the Black Sea region also play a role in domestic pricing (World Grain).
Government Policies and Interventions: Various policies, such as subsidies, import restrictions, and price controls, directly impact wheat prices. The government’s strategy to maintain strategic reserves and manage supply chains is critical (Al Jazeera) (World Grain).
Farmer Protests and Market Dynamics: Discontent among farmers regarding government policies and market conditions, such as low procurement prices and import policies, can lead to protests and supply disruptions, further influencing prices (Al Jazeera).
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