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| March, 16 2005 | Wednesday | 5 Safar 1426 |
Wheat from Sindh reaches market
LAHORE, March 15: Wheat from Sindh has started arriving in the market, setting an early trend for trade for the coming season and easing a bit of pressure on flour price.
According to PFMA sources, over 6,000 ton wheat has been arriving daily in the major market of Sindh for the last eight days. Sindh is expected to achieve its target of 500,000 ton wheat, as official procurement started on Tuesday.
Market observers say Sindh’s wheat would define national trend for commodity trade this year. The private sector will see the crop size in Sindh and prepare its strategy accordingly. It knows that like the last year profit may not be possible this season as well because of different reasons. In all probability, the observers say, the crop size would be substantial this year because of favourable factors.
The government literally haunted the private sector out of the wheat trade last year by withdrawing commodity finance at a crucial stage, raiding private stocks and placing liberal orders for import. These factors slashed the private sector’s profits, they recall.
The government has this year neither pledged incentives for the private sector nor reduced its own procurement targets. The Punjab government has resisted pressure from the federal government and donor agencies for reduction of procurement targets and announced an open-ended purchase plan. It would be doing so at the cost of the private sector, they say.
They claim that the crop size of Sindh’s production would be decisive for its strategy.
The wheat price had already started sliding in Sindh and Punjab would have a spill-over effect during the next few days, a Punjab Food Department official said. Wheat is being sold below the support price of Rs400 per 40kg.
He said the price was on the lower side in the beginning of the season because of moisture in the crop, but it picked up later on. “If it further slides because of bumper size of crop in Sindh, the private sector may not be interested in purchase and the provincial governments will be trying hard to contain price crash,” he said. —Staff Reporter
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