KARACHI, Dec 2: Despite a ban on wheat imports from India, wholesalers in Karachi have asked the government on Tuesday to reconsider its decision and lift the ban on the imports in order to stabilize the prices.

Indian wheat rates are currently hovering at $165-$175 per ton (C&F) as compared to more than $200 per ton price of Australian and Canadian wheat.

“I have requested Commerce Minister Humayun Akhtar Khan today to allow import of wheat from India,” Chairman Karachi Wholesalers Grocers Association (KWGA), Anis Majeed told Dawn.

In case the government brings Australian wheat — it would cost $210 per ton or Rs13.40 per kg in Karachi, while the landing cost of Canadian wheat at the rate of $225 per ton would be Rs14.36 per kg. Besides the voyage timing of the shipment, in case wheat arrive from these destinations, is about a month. The shipment timing from India is definitely lesser coupled with lower freight cost than Canada and Australia, he said.

“Indian wheat will cost Rs11.10 per kg if a deal is struck at $175 per ton C&F. This price does not include the government’s subsidy”, he said.

The government had banned the import of wheat from India two years ago on the grounds that the commodity was contaminated by Karnal bunt fungus.

The wheat prices in local wholesale markets is ranging between Rs11-11.50 per kg, which is Re1 per kg up if compared with pre-Ramazan prices. Two months back, wheat prices in the markets were Rs8.50-9.00 per kg.

Answering a question what is the benefit of importing wheat from India when it will cost nearer to the current market prices, he said the markets have already got one months’ stock and prices are bound to escalate with the passage of time due to lingering shortage. Wheat imports from India at Rs11 per kg will somewhat help in preventing further price hike.

He said Indian government allows quota to its wheat exporters but last week it had stopped allocating quota to the exporters. However, Pakistan can still get 150,000-200,000 tons of wheat from Indian exporters who have got previous quota allocations. This quantity will stabilize prices in the local markets.Anis said the country is facing shortage of wheat these days and the situation will further aggravate after a month.

He said chakki atta is now selling at Rs14-15 per kg in wholesale markets as compared to Rs12-13 per kg one-and-a-half months back. Karachi, having an estimated daily consumption of 15,000 tons of wheat, has over 1,500 small chakkies.

Last month, the government has also withdrawn 25 per cent import duty on wheat and plans to import 500,000 tons to overcome shortage. The government is yet to give final approval over the planned import either through Pakistan Agriculture Storage and Supply Corp (PASSCO) or Trading Corporation of Pakistan (TCP).

He said that he had talked with an Indian party on Tuesday who confirmed that there was no contamination in wheat. Besides, private sector importers would refrain from importing sub-standard wheat from any destination.

He added that there was no harm in importing wheat from India when other countries were purchasing wheat from it. Besides wheat, Pakistan also imports small amounts of pulses and red chillies from India and exports various consumer related items.