April 16, 2008	Wednesday	Rabi-us-Sani 9, 1429

RAWALPINDI, April 15: The sale price of wheat flour (atta) is set to increase by Rs3 to Rs5 per kg in the market effective Wednesday, as the Food Department Punjab commenced procurement of wheat from farmers on Tuesday on an enhanced support price announced by the government.

The increase in atta price is inevitable as the wheat support price was enhanced from Rs465 to Rs625 by Prime Minister Yousuf Raza Gillani while unveiling his government’s 100-day agenda.

The ex-flour mill rate of 20kg wheat flour was Rs290 till Tuesday. However, with the increase in the support price, the rate will shoot up to between Rs370 and Rs380. Deputy Director Food Rawalpindi Region Saqib Mannan told Dawn that the department would make every endeavour to ensure that the rate did not go beyond Rs380.

The trend in the market over the past few months has shown an upward increase of atta price, while the Food Department’s effort to control the price did not succeed due to smuggling and hoarding, he added. The upward trend has already aggravated the supply situation, which would take a new turn with the announcement of new price of wheat flour by the Punjab government. Experts monitoring the situation are of the view that the price of a 20kg bag would touch the figure of Rs400.

The increase in wheat flour price will provide ample opportunity to ‘Nanbaees’ and ‘Tandoorwalas’ to raise the price of ‘Nan’ and bread. This would also have an impact on the atta- based bakery items. The district governments have now the wheat flour crisis on the top of their agenda and were struggling to over-power the situation.

The Food Department Rawalpindi plans to buy over 50,000 bags each containing 40kg of wheat for its reserve stock. The wheat crop in Barani areas is nearing the maturing period while the harvesting season is expected to begin after May 15. The current spell of rainfall is beneficial for the rabi crop spreading over barani areas, according to farmers. Though wheat procurement campaign in Barani areas would begin in mid-May, the Food Department will continue to supply wheat to flour mills in Rawalpindi.

This year the government may not be able to achieve the wheat target as the UN Food and Agriculture Organization (FAO) has also feared a smaller wheat crop and the output is forecast at one million tons less than last year’s record due to sowing delays, less availability of irrigation water and high fertiliser prices.

Smuggling is one of the major factors leading to the cropping up of wheat flour crisis. The Deputy Director Food Rawalpindi disclosed that the Punjab government had decided to set up check posts to block smuggling of wheat. As of Tuesday with the start of wheat procurement campaign, a total of 23 check posts started functioning alongside the river Indus. These check posts are manned by Rangers and Highway Police. The legal inter-provincial movement of wheat on permits and for defence needs will be exempted from any restriction, he said.