KARACHI, May 4: More than 2,000 tons of all varieties of flour reached Karachi from Punjab on Tuesday which has virtually crippled the local milling. The prices of flour in local market, however, are reported to have risen to Rs17 a kg.

Following a decision to ban movement of wheat in Punjab and Sindh, the millers in Punjab are having a field day and are entering into long term arrangements for supply of flour to Karachi.

Local millers expect supply of flour from Punjab will increase to Karachi with every passing day but will never be able to meet total demand which is said to be in the vicinity of 5,000 tons a day.

"Punjab government has taken steps to keep its mills running at the cost of over 500 mills in NWFP, Sindh and Balochistan," a local miller remarked bitterly.

In an SOS to all top government functionaries, the Pakistan Flour Mills Association has blamed the Punjab government of giving a crippling blow to milling industry of other three provinces by sending flour. "It will render thousands jobless in Sindh, Balochistan and NWFP," a press release of the association warned.

The Sindh Food Department has offered Karachi millers to seek special permit for procurement and transportation of wheat from interior of the province to Karachi. But the millers are found to be reluctant as they see getting a permit and official monitoring of wheat stock "another ploy to make quick money."

Officials say that they want millers to be a part of regulated and disciplined wheat trade. "Wheat and flour are too sensitive items to be left at the whims of market forces," an official remarked.

He expressed the hope that with the course of time the millers, the traders and officials would be able to strike an equation in the best interest of the consumers.

In Sindh, the officials are coming down with a heavy hand on the traders and brokers who are accused of hoarding wheat. No firm figures are available but there are reports of raids in Nawabshah, Sanghar and other places on private wheat stocks.

Official procurement drive in Sindh is reported to have brought about 200,000 tons of wheat so far in the government godowns. The government wants to procure 0.6 million tons of wheat this season.

Meanwhile, in Karachi the millers held a meeting with Sindh Food and Agriculture Minister Arif Jatoi on Tuesday. The meeting is expected to continue on Wednesday also. Millers want the government to allow them purchase wheat directly from the farmers.

In a representation to the Sindh Chief Secretary, the Pakistan Flour Millers Association, Sindh alleged that their deposit of about Rs50 million is still lying with the Sindh Food Department. This amount is for purchase of about 4,000 tons of wheat.

The millers in Sindh contend that Punjab government has allowed the millers in Punjab to purchase wheat directly from the farmers. The wheat price in Punjab is therefore Rs9.20 a kg and that of flour Rs12 a kg.

In Karachi, the association say the price of wheat has gone up to Rs1,115 for a 100 kg bag and price of flour has gone up to Rs17 a kg. Officials say that millers are keeping the prices of flour high to keep government under pressure. But they seem to be without any strategy to counter millers' pressure.