September 03, 2007	Monday	Sha'aban 20, 1428

LAHORE, Sept 2: Wheat price is at an all-time high in Punjab, mainly due to the government’s reluctance to release the commodity to flour millers.

Wheat is being traded at Rs520 per 40kg in the upper Punjab region and Rs510 in central parts of the province, with flour prices shooting to Rs290-295 per 20kg. The government, however, seems impervious to the situation.

According to market and food department sources, demand for flour is at the highest during the first week of every month when the salaried people shop for the next four weeks.

The government apparently does not realise that wheat prices are steadily going up. During the past fortnight, flour prices witnessed a rise of Rs7 per 20kg. But, the price hike has failed to spur the Punjab government into action.

An official of the food department blames someone at the helm of affairs in the Punjab government. Without naming the top official, the source said that in spite of persistent rise in the flour prices, the top person had guarded the stocks for election months.

The department wanted to release the stock in the first week of the month and then slow down progressively and repeat the strategy for the next few months.

But it has not been allowed to do so resulting in wheat prices shooting through the roof. The department planned to release wheat at Rs465 per 40 kg, which is Rs45 to Rs55 less than the prevailing market rates. It could reduce the price of 20kg bag by Rs20 straightaway, and bring it down to Rs270.

A former employee of the Food Department said the officials’ unwillingness to release wheat or deliberate delay had cost the consumers Rs3 billion in the past three months.

Those who bought wheat at around Rs420, were now selling it at Rs500 per 40kg. The judiciary should take note of this Rs3 billion robbery in three months, and that too in a year when the government claimed to have reaped a bumper crop, he said.

Someone should take the government to task and ask whether it lied about the crop size or it had failed to protect people from hoarders, he added.

“Flour millers have been demanding wheat for the past many weeks because of market realities, but the government has not responded,” says Khaleeq Arshad, former office-bearer of the Pakistan Flour Mills’ Association. He said the government should judge the market trend and stem the tide. He said the government had no sufficient wheat stock and it was trying to save whatever it had for the dry period.

“It may be true that the government does not have sufficient stocks for the season, but it’s enough to keep the market under control,” says Rao Akram of Akbari Mandi.

He said the government should keep supplementing wheat for a few months and then plan for import, if need be.

However, flour prices have not gone up as much as they could have as millers are getting 25 per cent of the wheat for fine flour (maida) besides flour and selling it at Rs20 per kg.

This cushion of Rs7, though compromising on the quality of the flour, had kept prices from moving further up, he said, adding that most of the 20kg bags in the market were also underweight and no-one was ready to check them.

According to Mr Akram, both these factors were keeping the prices of flour slightly under control and providing political cover to the government.

If the city district government started checking the weight, most of the millers with names might stand exposed, he said.