KARACHI, July 9: Wheat price in the open market again climbed to Rs2,400 on Wednesday from Rs2,200 per 100kg a few days back, shattering the hopes of a fall in the prices of various flour varieties.

Wheat prices had fallen to Rs2,200 on Saturday on a Sindh government decision to lift ban on inter-district movement of wheat on Thursday.

According to a miller, wheat price started crawling up again on Monday on a statement by the Sindh food minister a day back in the electronic media which conveyed a message that flour rate would hit a record peak after the lifting of ban on wheat movement. It led to an increase in the rate by Rs50 per 100kg. The flour miller that the statement also cautioned wheat traders and stockists in the interior of Sindh who hoarded the commodity expecting a major increase in prices.

The miller did not confirm in what context the minister issued such a statement, but it ultimately pushed up wheat prices in the open market.

He claimed that the rate of 80 kg atta No 2.5 had come down to Rs2,050 on Monday from Rs2,200, but on Tuesday it again increased to Rs2,150.

He urged the government to issue imported wheat as per mills’ requirement.

However, despite a sudden increase in wheat prices, there is no change in prices of various flour varieties at retail level.

Retailers had earlier increased prices of chakki atta, fine atta and atta No 2.5 to Rs32, Rs32 and Rs30, respectively, from Rs30, Rs30 and Rs28 per kg.

Karachi Retail Grocers Group General Secretary Farid Qureishi confirmed about the reversal in price of wheat to a previous level.

Mr Farid and some flour millers had earlier claimed that the price of flour varieties would drop by Monday and Tuesday, but these remained unchanged owing to rising wheat prices on Wednesday.

Former chairman of Pakistan Flour Mills Association Shaikh Akhtar Hussain said “if government wants to see a fall in flour prices, it should release wheat from its stocks.”

Seventy-two mills in Karachi need at least 50,000 tons per month, he said, attributing the price-hike to hoarding of wheat by traders in interior of Sindh.

He said the provincial food department had procured around 565,000 tons of wheat and it reportedly sought 600,000 tons more wheat from the federal government.

“So far mills in Karachi are running as per wheat availability to them. Wheat flour is also arriving from flour mills in the interior of Sindh.”

Millers were of the view that wheat was being imported at $410 per ton which means that it would cost Rs32 per kg, for which the government would have to give subsidy to lower the flour price.