KARACHI, July 25: Flour mills are demanding of the government not only to regularise flour prices, but also to come up with a formula where wheat supply is ensured at a controlled rate.

The recent move of the Sindh government to lift ban on inter-district movement of wheat did not produce the desired results and wheat is still in short supply.

The millers argue that hoarding of wheat is causing shortage of the produce, and pushing prices higher.

Consequently, millers say if the government puts a cap on flour prices and does not ensure wheat supply at a reasonable rate, the millers would not be able to meet their cost. Even today wheat is being quoted at Rs23 to Rs24 per kg against the fixed price of wheat flour which is Rs24.50 per kg.

The millers are urging the government to release wheat from its stocks to overcome shortage and this would also force hoarders to release their stocks in the open market.

The provincial and federal governments historically release wheat from their stocks in the month of September. However, millers are demanding that to in order to ease pressure on prices, some stocks should be immediately released, particularly when they have almost met their procurement targets.

Pakistan Flour Mills Association’s senior member and vice chairman KATI Johar Ali Khandhari said a shipload of 36,000 tons of wheat from Ukraine is presently discharging at Karachi port and another ship with 35,000 tons is due on July 28.

He further stated that the Trading Corporation of Pakistan (TCP) is floating 0.5 million tons wheat tender on July 26 which indicates that wheat supply would further improve.

Therefore, when provincial and federal governments have almost met their procurement targets and imports are also taking place, there is a need to take prudent measures which could ensure sustained supply of wheat to curb rising prices of wheat flour.Mr Khandhari said that in order to bring down wheat flour prices, the government will have to ensure stable wheat prices.