September 08, 2007	Saturday	Sha'aban 25, 1428

KARACHI, Sept 7: As the Sindh food department has started issuing wheat delivery challans to flour millers, price of 100kg wheat bag, which had earlier fallen by Rs30 for a 100kg bag only two days back, again rebound to Rs1,360 from Rs1,330.

Flour millers said prices had declined two days back in anticipation of release of a major stock by the food department to flour mills in Sindh, but as it did not happen, prices have returned to old levels.

Chairman, Pakistan Flour Mills Association (PFMA), Sindh Zone, Ansar Jawed, said he was not in a position to predict any price decline as mills are expected to start getting wheat from the food department below their requirement by Monday or Tuesday next, but there is a possibility that prices might remain stable.

He said flour mills in the entire Sindh would get 106,000 tons of wheat per month, and as per policy this process should continue initially for two months.

He pointed out that this would not be sufficient to meet the 30 per cent requirement and millers would have to lift 70 per cent wheat from the open market.

The Sindh government has procured 575,000 tons of wheat for this season. As far as Karachi, he said some 70-80 mills would get 46,000 tons per month as against their requirement of 160,000 tons per month.

The Sindh government had fixed the issue price of wheat at Rs465 per 40 kg, up by Rs50 as compared with last year.

“The Sindh government should now procure additional wheat from Passco, and the province should have stocks of 1.5 million tons in hand to meet its requirements, Ansar said.

Before the advent of Ramazan from September 14, consumers have already started paying Rs2 per kg more to buy various varieties of wheat flour. Atta No. 2.5, (fine, mill and chakki) which was earlier available at Rs15, Rs16 and Rs17 per kg on July 1, is now priced at Rs17, Rs18 and Rs19 per kg, respectively. The 10kg fine atta bag now sells at Rs185-190 as compared with Rs160 on July 1.

Despite a bumper wheat crop of 23.5 million tons as claimed by the government followed by a ban on export of wheat and flour- related varieties (value-added items) by the government, consumers, instead of getting any relief in atta prices, virtually paid Rs2 per kg more in the last two months.

Besides, the federal government also did nothing to recover two million tons of wheat in markets.

The city government is in the process of finalising a price-list with millers, traders and wholesalers who have given an assurance to the government that they would give some relief in the shape of price-cut to the people. However, any price-cut by the traders would be mere an eye-wash when prices have already gone up by Rs2 per kg.

Chairman, Karachi Wholesalers and Grocers Association (KWGA), Anis Majeed, said that the Sindh food department would issue only 80,000 tons to Karachi mills as against their requirement of 150,000 tons a month which may create problems in price stability.He urged the Sindh government to get an additional 500,000 tons, out of total Passco’s procured stocks of 1.3 million tons, after making a request to the Centre so that prices in the market register a fall during Ramazan.

He said wheat prices reverted to old level on Friday on reports that Karachi and Sindh mills would get fewer stocks.