KARACHI, Sept 23: Has wheat trading and flour business in Sindh become an underworld operation? This question has emerged from trading of accusations between leaders of the Sindh chapter of All-Pakistan Flour Mills Association and the provincial food department.

The millers are on an indefinite strike for the last two days to protest against what they allege demand for Eidee from top government functionaries. The government accuses them of misusing wheat given on subsidised rates.

As millers’ strike enters the second day on Tuesday, retail outlet operators in various markets do not report any unusual price rise or wheat flour shortages, but fear emergence of a crisis after a few days as flour millers are on strike in all parts of the province.

“Buying pressure on all commodities is usually seen relatively low after the second week of every month,’’ a well known retail outlet owner said. But Ramazan is concluding on the first day of next month, to be followed by almost a weeklong extended holidays for business which may force buyers to go for panic buying in the next few days.

Conflicting claims are being made by the Sindh food department and the leaders of millers. Millers association claims a total suspension while food officials maintain that more than 50 mills out of total 178 in the province are working.

“I can give you names of at least 15 flour mills in Karachi that are grinding wheat right now,’’ claimed Mr Moosavi, director, Sindh food department.

Millers in their private conversation concede some of their friends are not with them in strike because they have been given an opportunity to “earn quick money”.

The Sindh chapter of All-Pakistan Flour Mills Association announced an indefinite business closure from Monday after what many millers alleged “a demand from top government functionaries for Rs30 Eidee on each wheat bag of 100 kgs given from government stocks at subsidised rates.’’

“In September, we are giving about 140,000 tons of wheat from government stocks to the millers in the province,’’ the food director informed.

In Karachi, the mills are being given about 550,000 tons. “The committee visited mills to ascertain whether the millers were using subsidised wheat from government stocks properly,’’ he said.

“We agreed to give government functionaries Rs12 extra on a 10 kgs bag,’’ a senior leader of the millers confided who revealed the demand was for Rs15 a bag.

“As many as 80 per cent of millers had deposited this money with one of the flour mill owner for onward payment to relevant people,’’ he said.

While all these allegations of millers are open for an investigation, the fact is that a nine-member committee formed in May 2008 with declared terms of reference “to check illegal transportation and movement through road and hoarding of wheat’’ was activated last week.

Headed by Mr Shahnawaz Magsi, the credentials of the committee members are unknown and there is a question on the objectives of its very formation.

Since the committee has four members, including its chairman who is from Magsi tribe, from where the Sindh food minister hails, the millers call it a Magsi force as it raids flour mills and godowns with armed guards.

“The Sindh chief minister has formed this committee,’’ the official said.

The food director was asked to explain reasons for forming this committee when there is a full-fledged food department and when there is a police force for assistance, why the committee with armed guards was raiding flour mills and godowns. The millers were asked as to why their members agreed to pay a huge amount of money when they are convinced it is wrong.

Soon after harvesting began in Sindh, the provincial government imposed an inter-district ban on wheat movement and set up more than a dozen check-posts from Nawabshah to Karachi.

According to the millers, all these check-posts were operated by the committee people with the help of armed tribesmen from Magsi.

The millers had then in a press conference at the Karachi Press Club alleged extortion by the people at these check posts on wheat transportation.

“More than a billion rupees have been paid as extra money since harvest,’’ a senior leader of the milling industry alleged.

No wonder average good quality wheat flour costs Rs28 to Rs32 a kg for consumers in the market.