Wheat Price in Pakistan – Latest Gandum Rate
The wheat price in Pakistan fluctuates significantly across regions and over time, primarily due to a complex mix of market dynamics and government policies. As of May 2025, the gandum rate ranges from Rs. 2500 to Rs. 2800 per 40 kg (1 Mund), varying considerably by city, the quality of the wheat, and other local factors.
The gandum rate for major cities of Punjab is as follows:
The gandum rate for major cities of Sindh is as follows:
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Prices differ not only between provinces but also within cities. In Punjab, the rate per 40 kg typically ranges from Rs. 2500 to Rs. 2700, with Lahore sometimes seeing the highest prices, reaching up to Rs. 2750. Other regions like Dera Ghazi Khan and Sialkot have relatively lower prices. Similarly, in Sindh, prices range between Rs. 2600 to Rs. 2800, with Karachi and Sukkur on the higher end. The Khyber Pakhtunkhwa and Balochistan regions reflect similar trends in pricing, influenced by their local production and market conditions.
The prices vary across regions due to transportation costs, local demand, and seasonal supply. Regions farther from production centres or with higher transportation costs tend to have higher prices. Urban areas with higher demand may see elevated prices, while rural regions with abundant supply may have lower rates. Additionally, seasonal harvest fluctuations can cause temporary price changes, with areas experiencing higher yields seeing lower prices and those facing shortages seeing price increases.
Several factors contribute to the volatility in wheat prices:
Government Policies
The abolition of the wheat support price, as mandated by the IMF’s agreement in 2023, has had a severe impact on farmer profitability. In the absence of price guarantees, farmers are forced to sell gandum below production costs, leading to significant financial losses. For example, the cost of wheat production in Punjab is estimated at Rs. 3,200 per 40 kg, yet the gehun ka sarkari rate is well below these figures, leaving farmers with a loss.
Supply and Demand
The fundamental principle of supply and demand plays a significant role in determining wheat prices. When the supply of wheat exceeds demand, the price tends to decrease today, and when demand surpasses supply, prices increase. For instance, Punjab’s wheat production for 2025 is forecasted to be 12% lower than the target, potentially affecting supply and driving up prices.
Input Costs
The rising costs of inputs such as fuel, fertilizers, and labor directly contribute to higher production costs. In the current season, the cost of production in many areas has surpassed the market prices, putting farmers at a disadvantage. Despite the rate being lower than expected, the cost of production is pushing many farmers into financial distress.
The fluctuating wheat prices are putting farmers under severe financial strain. As illustrated by farmers like Muhammad Aslam from Multan, many are selling gandum at a loss due to the mismatch between production costs and market prices. In some regions, farmers have complained about the government’s failure to reinstate the support price, resulting in distress and financial insecurity.
Moreover, the increasing cost of inputs such as diesel and fertilisers is pushing the total production cost of wheat well beyond Rs. 3,000 per 40 kg. In contrast, market prices often remain below these costs, which undermines the financial sustainability of wheat farming. This discrepancy has had a severe economic impact on the rural economy, especially in Punjab, the country’s largest wheat-producing state.
The wheat pricing scenario in Pakistan remains volatile and heavily influenced by a multitude of factors, including government policies, input costs, weather conditions, and market dynamics. While some regions benefit from stable supply chains and higher prices, others continue to face steep losses.
The elimination of the wheat support price and rising production costs have compounded challenges for farmers, highlighting the urgent need for better policy support and market stabilization. Without addressing these issues, Pakistan’s wheat farmers may continue to face economic distress, ultimately impacting food security and rural economies across the country.
