Wheat hoarders to face crackdown

KARACHI: The Chief Minister of Sindh (CM), Syed Murad Ali Shah, has directed the food department and district administration to launch a strict crackdown on wheat hoarding and profiteering, cautioning that artificial shortages would not be tolerated as the province prepares for its wheat requirements for the coming months.

The CM Sindh has presided over a high-level meeting at the CM house to review wheat availability, stock positions, and market trends.

The meeting was attended by Provincial Ministers for food, excise and taxation, agriculture and irrigation, provincial secretaries, advisors, and other senior officials.

The provincial Minister for Food, Makhdoom Mahboob, briefed the CM that Sindh harvested a bumper wheat crop of 4.8 million metric tonnes (MMT) in the 2025-26 season, while the province’s annual consumption requirement stood at 6.53 MMT, indicating a structural shortfall.

According to the provincial food department, Sindh had a total wheat availability of 4.94 MMT, including carryover stocks. However, after accounting for consumption between April and June and wheat transported to other provinces, officials estimate the province could face a deficit of about 2.1 MMT by March 2027 if market supplies do not continue.

Minister Food told the chief minister that the Food Department currently holds 0.2218 MMT of wheat stocks, including carryover reserves and fresh procurement.

The meeting was told that Pakistan had an estimated net wheat balance of 24.39 MMT, of which nearly 12.2 MMT was believed to be in the possession of farmers and households, while about 3.5 MMT is visible in markets in Punjab and Sindh, they estimate roughly 9.5 MMT remains outside normal market channels.

The Chief Minister of Sindh has expressed concern that hidden stocks could fuel speculation and drive-up prices.

“The government will not allow hoarders and profiteers to exploit consumers through artificial shortages. Wheat is a strategic commodity, and its availability must be ensured at all costs,” he said.

The meeting was told that wheat prices have increased sharply in recent months. Current prices per 40 kilo grams were reported at between Rs.4,150 and Rs.4,350 in Punjab, Rs.4,680 in Sindh and Khyber Pakhtunkhwa, and Rs.4,600 in Balochistan.

Officials noted that wheat prices in Punjab had climbed from around Rs.3,200 per 40 kg in early April to between Rs.4,200 and Rs.4,600, representing an increase of more than 30 to 40 per cent within a few months.

The chief minister was also briefed that returns from holding wheat stocks had begun to exceed the returns available through National Savings instruments, creating incentives for speculative storage and hoarding.

The provincial government also reviewed flour prices across Sindh, with average prices reported at Rs.135 per kilogram in Karachi, Rs.131 in Hyderabad, and Rs.124 in both Sukkur and Larkana.

CM Sindh has said higher wheat prices should not be used to justify excessive increases in flour prices.

“Any increase in wheat prices must not become an excuse for excessive profiteering. The administration must ensure that consumers receive flour at fair prices,” he said.

The chief minister instructed district administrations to identify illegal stockpiles, inspect warehouses and take action against unlicensed wheat traders under the Sindh Essential Commodities Price Control and Prevention of Profiteering and Hoarding Act, 2005.

The meeting was informed that border monitoring had already been initiated to prevent the unauthorized movement of wheat outside the province.

Murad Shah also directed the food department to strictly monitor wheat stocks across Sindh; enforce licensing requirements for wheat storage and trading, strengthen border surveillance to curb unauthorized wheat movement; ensure regular market supplies to stabilize prices; and expedite proposals for fixing stock limits for flour mills.

It was also proposed that wheat stocks seized from illegal hoarders be treated as government-procured wheat and shifted to official godowns. Under the proposal, the owners of seized stocks would be compensated at a rate of Rs3,500 per 40 kg.

Concluding the meeting, the chief minister of Sindh, Murad Shah, has directed all concerned departments to maintain close coordination and submit regular reports on wheat stocks, prices and market conditions.