Why Flour Mills Are Avoiding Govt Wheat? Real Reasons Revealed
Pakistan’s wheat market is witnessing a major shift as flour millers and chakki owners increasingly reject government wheat and instead purchase grain from the open market. This unexpected trend has raised serious concerns about the efficiency, transparency, and stock quality within provincial food departments—especially in Sindh, where the issue is most visible.
For the 2025–26 wheat season, millers say government wheat is simply too expensive, too slow, and too risky to buy. In contrast, open-market wheat is cheaper, cleaner, and easier to procure. This has forced the Sindh Food Department to request a major downward revision of its wheat release price to attract buyers and clear old stocks.
This detailed report explains all the real reasons behind why flour mills across Sindh are refusing to lift government wheat—and what it means for the future of Pakistan’s wheat supply chain.
Government Wheat Costs More Than Market Wheat
The biggest factor behind the shift is the widening price gap.
- Government release price: Rs 9,500 per 100kg
- Actual miller’s cost after labour, loading, unloading & transport: Above Rs 10,000 per 100kg
- Open market price: Rs 9,400–9,500 per 100kg (all-inclusive)
This means millers can save Rs 500–600 per bag simply by buying from the private market.
Millers also argue that government wheat often comes with hidden costs—such as weighbridge deductions, delays in release, and extra labour charges. These additional expenses push official wheat far above its announced release price.
Open Market Wheat Is Cleaner & Easier to Handle
Flour millers overwhelmingly say one thing: private traders supply better wheat.
In the open market:
- Millers receive 102kg bags at the mill gate
- After cleaning/wastage → exact 100kg net grain
- The grain is clean, dry, healthy, and consistent
- The delivery comes on credit, allowing millers financial flexibility
- No loading or unloading cost
- No transportation expense
- No deductions at weighbridge
In short, the open market provides a smooth, hassle-free supply chain.
On the other hand, millers say government wheat bags often contain:
- Mixed grains
- Moisture-damaged stock
- Small stones or impurities
- Old crop carryover
- Lower weight than labeled
- Wheat affected by rain or poor storage conditions
This reduces flour quality and increases operational losses for mills—making private wheat the more reliable option.
Slow & Complicated Government Procedure
Government procurement is also avoided because the process is time-consuming.
To obtain government wheat, millers must:
- Submit challan
- Deposit full payment in advance
- Wait for release orders
- Arrange their own labour
- Arrange trucks for transport
- Bear weighbridge deductions
- Handle long queues at godowns
Even after completing all formalities, millers say they still cannot be sure of the grain quality they will receive.
In comparison, open-market traders deliver wheat directly to the mill within hours—sometimes even within 30 minutes.
Faulty Weighbridges & Unfair Deductions
Millers are especially frustrated with government weighbridges, which they say are:
- Faulty
- Outdated
- Not calibrated
- Often show “mysterious weight losses”
Due to this, millers complain of receiving less than 100kg net wheat per bag after deductions, even though they pay full price.
They argue that these deductions “eat away their profit” and damage trust in the official system.
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Quality Concerns Over Government Stocks
Another major concern is the condition of carryover wheat stocks in Sindh. A portion of the stock includes wheat from the 2022–23 crop, which was damaged during heavy rains.
Although the department claims regular fumigation, millers say:
- No third-party laboratory testing has been conducted
- Stock quality is not certified
- Moisture levels are not measured
- Fungal contamination is not checked
- Pest infestation reports are not shared
Out of the 1.34 million tonnes stored by the Sindh Food Department, officials estimate only 1.27 million tonnes are fit for human consumption.
Millers say they cannot take the risk of buying unhealthy wheat because it directly affects flour quality—and ultimately consumer trust.
Hidden Costs Reduce Profit Margins
Flour mill owners say the government’s wheat cost structure contains multiple “hidden expenses” that are not included in the official release price, such as:
- Labour for loading & unloading
- Multiple bag handling
- Cleaning wastage
- Weight loss
- Transport fuel
- Godown entry & waiting time cost
These hidden costs quietly increase the total price of government wheat—making open-market wheat far more profitable for mill owners.
Government Requests Rs 1,000–1,500 Price Cut
Realizing the problem, the Sindh Food Department has recommended a major price reduction.
Proposed new release price:
➡️ Rs 8,000–8,500 per 100kg
Food Secretary Bachal Rahpoto confirmed that a price cut is essential to:
- Clear old stock
- Create storage space for new procurement
- Reduce outstanding liabilities (currently Rs 176 billion)
- Reduce annual markup (Rs 2 billion on old stock)
- Restart smooth wheat circulation in the market
Without this revision, government wheat may remain unsold and become a financial burden.
Impact on Karachi’s Wheat & Flour Market
Karachi’s consumption is significant:
- Winter: 250,000 tonnes/month
- Summer: 200,000 tonnes/month
Much of this demand is currently being fulfilled by private wheat suppliers.
If government wheat continues to be ignored:
- Open-market prices may gain more influence
- Government stocks may expire
- Wheat shortages could occur in late February
- Flour prices may rise temporarily
This makes the price revision even more urgent.
Sindh’s Wheat Sowing Progress & Farmer Subsidy
For the upcoming harvest:
- 43.6% wheat sowing completed as of November 21
- Target: 3.2 million acres
- Government offers Rs 24,700 per acre subsidy (DAP + Urea)
- Total programme cost: Rs 55 billion
This subsidy aims to improve production and reduce market pressure next year.
Conclusion – Flour Mills Avoid Govt Wheat Real Reasons
Flour mills are avoiding government wheat because the private market offers:
- Better grain quality
- Lower costs
- Faster delivery
- Cleaner supply chains
- Flexible payment options
- No deductions or hidden charges
Unless the government reduces its wheat release price and introduces strict quality checks, millers will continue to rely on private suppliers.
The Sindh cabinet’s upcoming decision on price revision will play a critical role in stabilizing the market, clearing stocks, and ensuring affordable flour supply across Pakistan.
