KARACHI, July 21: While Punjab bureaucracy continues to defy Prime Minister Ch Shujat's instructions to issue notification for lifting ban on inter-provincial wheat movement , the Sindh government is considering to start releasing wheat in small quantities from its stock to flour mills in Karachi.

Sindh has about 184,000 tons of wheat in the stocks and 100,000 tons are being bought from PASSCO. "We may consider issuing 50,000 tons of wheat every month to flour mills in Karachi with close monitoring," the Sindh food secretary informed Dawn by telephone on Wednesday.

Officials believe that there is still about three to four lakh tons of wheat in interior of Sindh stocked by the speculators who would be forced to release if wheat supply in Karachi is eased.

Earlier, the Sindh government has decided to start issuing wheat from its stocks from September when it will be able to build up stocks from purchase of 100,000 tons from PASSCO and expected share of 250,000 tons from half a million imported wheat.

With about half a million tons of stocks, the Sindh government felt comfortable in releasing about 100,000 tons every month till arrival of next half a ton million of wheat by October from which another 250,000 tons of wheat is said to have been promised to Karachi.

But now that about 140 millers in Sindh look desperate and are holding a meeting on Thursday to decide on going for an indefinite strike, the Sindh government was forced to reconsider its earlier decision and is showing inclination for releasing limited quantity of wheat on selective basis with close monitoring.

Malik Naeem, the local leader of the Pakistan Flour Mills Association is, however, opposed to release of small quantities of wheat from meagre government stock in Sindh.

He wants Punjab government to allow Sindh millers to lift 50,000 to 100,000 tons of wheat from border towns (Rahimyar Khan etc) on permits to be lifted on trucks for which numbers would be given in advance. He also favours monitoring the wheat crushing in very mill that buys wheat from Punjab.

"Lets Sindh government build up stocks to a comfortable level before it starts issuing grain to the mills," he said and feared that release of stocks in present conditions favours "only the corrupt officials of Sindh Food Department and about a dozen wheat brokers who have now acquired ownership or partnership stakes at least in 10 flour mills of Karachi."

"Everyone knows who are these brokers," he replied when asked to identify them and name the mills in which they have stakes. "They have strong connections in Punjab from where wheat continues to trickle in Sindh despite all official restrictions," he revealed.

Naeem's calculation shows that these brokers get Rs100 to Rs120 premium on a 100 kg bag of wheat from Punjab. The mills that buy wheat at Rs10.50 to Rs11 a kilogram sell flour at Rs13.50 to Rs14 a kilogram and retailers offer it to consumers at Rs15 to Rs16 a kilogram.

Malik Naeem proposes that the Sindh government should overhaul food department, put in place a fool-proof monitoring system that should closely watch the crushing of wheat by every mill of the wheat issued to it and a steady supply of flour to retail centres in Karachi.

The Sindh food secretary indicated that the government may be forced to import half a million tons more wheat after having received one million tons of wheat from abroad.

Market analysts suggest that government should announce wheat import programme in advance to counter the manipulations of big sharks in the grain market who are thriving on cheap bank credits and hoarded wheat in Punjab and Sindh in expectation of a flour price flare-up in Ramzan and after.

They predict wheat situation assuming a crisis sometimes in December and January if government does not pre-empt the oncoming shortages. Meanwhile on Wednesday, the Sindh Food Minister Arif Jatoi met the federal food secretary in Islamabad to discuss the modalities of taking delivery of the promised 250,000 tons of wheat from half a million tons of imported wheat due in Karachi sometimes in first or second week of September.

The bids for import of half a million tons of wheat is being opened on Saturday. It will take at least 15 days for the successful bidders to finalize formalities before placing order and shipment.

Under the tender condition, wheat booked for shipment to Pakistan will be inspected by reputed and agreed companies before loading on the vessels. The next tender for import of another half a million tons of wheat is expected to be floated by late this month or early next month.