August 25, 2007	Saturday	Sha’aban 11, 1428

KARACHI, Aug 24: With the holy month of Ramazan only 20 days away, the price of atta (flour) No. 2.5 in many areas has climbed to Rs17 per kg compared to Rs16 per kg a day earlier.

The raise followed fresh increase in price of 80 kg atta bag to Rs1,230 from Rs1,200 a day back. Last week, it was Rs 1,170-1,180 per bag. In the first week of July, atta No. 2.5 was selling at Rs15 per kg at retail level.Makers of 10 kg Ashrafi fine atta bag and other producers have also increased the rate to Rs180 from Rs175. In July it was being sold at Rs160.

The push in atta no 2.5 price was triggered by phenomenal jump in wheat prices to Rs1,300 per 100 kg bag on Thursday from Rs1,285 on Wednesday.

General Secretary Karachi Retail Grocers Group (KRGG), Farid Qureishi said that many retailers had already started charging Rs17 per kg for atta no 2.5 after procuring the 80 kg bag at new rates, while others may follow suit as they had some old stocks.

He said the wholesale rate for atta no 2.5 now stood at Rs 15.38 per kg as compared to Rs14.75 per kg previously. However, he said he was unable to give the reason for increase in wheat prices.

He said so far the rates of chakki atta and fine atta were pegged at old rates of Rs18 and Rs17 per kg but it might go up in case increase in wheat rates continues.

Consumers had already experienced increase in prices of bread and other items in the last two months as some millers were also running bread making units.

Chairman Karachi Wholesale Grocers Association (KWGA) Anis Majeed said that the government should now release wheat stocks to the millers from the new crop in order to stabilise prices. He said it seemed that the farmers in the interior were also not properly releasing the stocks.

Besides, wheat flour and its bye-products like (sooji, maida, etc) are also being officially exported. The smuggling of these items to Afghanistan and Iran has also been rampant, he said.

“The price of atta is likely to come down in September (before Ramazan) in case the government releases wheat stocks to the millers,” he said urging the government and Passco (which has 1.3 million tons of wheat in hand) to release stocks in view of the holy month’s requirement, otherwise consumers will suffer from higher prices.

He said that the government had been claiming to have a bumper wheat crop (23.5 million tons) but the KWGA estimates that the crop is only 21.5 million tons and the government has been concealing the facts.

Anis expressed surprise that no action had been taken against the hoarders who according to the government had stocked about two million tons of wheat.

He said that the government’s action in imposing a ban on wheat export in June to control rising prices of wheat flour had so far brought no relief to the hard pressed consumers.

Chairman Pakistan Flour Mills Association (PFMA), Sindh Zone, Ansar Jawed said that the millers had enhanced the atta no 2.5 rate to Rs1,230 per 80 kg bag when 100 kg wheat bag rate surged to Rs1,285 on Wednesday from Rs 1,250.

He said that the Supreme Court’s decision to curb movement of heavy vehicles on August 17 had also resulted in pushing up wheat rates as transporters had increased the rate by Rs15 per 100 kg bag.

“We have requested the SC on Friday to keep the movement of atta and wheat trucks and trawlers open,” Ansar said.

He said that the federal government had already hinted at releasing wheat stocks to the mills on September 1, which will definitely result in price cut ahead of Ramazan.

Besides, there is no need for being panicky because atta consumption usually declines in the holy month by 22-25 per cent as other items are also consumed. He said an estimated 1.5 million wheat bags of 100 kg were grinded per month in Karachi for making atta in normal days and in Ramazan it comes down to 1.25 million tons.