June 25, 2008	Wednesday	Jamadi-us-Sani 20, 1429

PESHAWAR, June 24: At least 1,550 flour licence holders are involved in smuggling of the commodity from parts of Peshawar to Afghanistan. Before the recent flour crisis, the number of permits was around 1,600, but it increased to 2,000 when people saw it was a lucrative business, officials and dealers said.

A source in the food department said most of the licences had been issued on the basis of political affiliation. He said more than 1,500 people having no shop or godown in the city had got licence for supply of four from Punjab to Peshawar, but they were directly smuggling it to Afghanistan via different routes of the tribal agencies.

“We cannot oppose a proposal of the high-ups and are bound to get a fee of Rs200 and issue the permit whenever ordered,” an official of the food department said, adding that when a permit was issued departmentally, officials checked the dealer’s shop and other requirements but in case of recommendations from a minister or other authorities nothing like that was done.

This was, however, denied by ration controller Riaz Akhtar when contacted by Dawn, saying permit was issued only to dealers.

About the flour crisis, he said wheat production this year was much below the expected quantity, but the situation was satisfactory and the problem would not worsen. During a visit to various shops and the wholesale market, dealers said the main reason behind flour shortage was its smuggling to Afghanistan, adding that most of the dealers were directly involved in the illegal business but no action was being taken against them.

Peshawar Wholesale Food Grain Dealers and General Merchants Association general secretary Sadaqatullah said there were more than 2,000 licence holders and of them only 450 were actual dealers and the rest were getting their quota and selling it to dealers in Afghanistan.

Demanding an inquiry into the issuance of permits, he said smugglers had complicated the problem because sometime genuine dealers were denied supply of flour from Punjab to various districts of the NWFP.

According to him, the flour demand in Peshawar was 6,000 tons per day and the present supply was 5,000 tons. He asked for increasing the four quota of dealers.Flour dealer Sher Shah said that in the wholesale market the price of 20kg flour bag on June 21 was Rs410, but it increased to Rs420 on June 23 and to Rs430 on June 24. He said the price of 20kg fine atta had increased by Rs30 since June 21 and the price was not stable and was increasing due to shortage of the commodity. The dealers said the price of 100kg wheat last year in this month was Rs1,200, which had now increased to Rs2,200-2,250.

Retailers have also increased the rate of mixed flour in various markets from Rs420 to Rs440 per 20kg bag and a bag of 20kg fine atta is available for Rs480 and above.

The supply of flour to fair price shops in the city has reportedly been suspended for the time being.

Dealers alleged that police at various checkposts in Peshawar were impounding trucks and forcing them for bribe although the dealers had permits and other relevant documents.