KARACHI: Wholesalers fear that the cost of imported wheat may go up as the dollar appreciated three per cent against the rupee in the last two weeks.

The rupee-dollar parity continued to fluctuate as 10 days back one dollar was equal to Rs98.50 compared to Rs102 on Wednesday and Rs103 on Monday.

The fluctuation in exchange rate had caused anxiety among the wheat importers who were hesitant in placing fresh orders.

The cost of wheat import has risen by at least Rs1.50 per kg keeping in view of increase in dollar value by Rs3 to Rs4 in the last 10 days, said Karachi Wholesalers Grocers Association (KWGA) Chairman Anis Majeed.

He said importers and millers have already booked 15-16 ships in which over 700,000 tonnes of imported wheat would arrive in August-November period of this year at a price ranging between $260-290 per tonne C&F Karachi.

However, traders and millers were definitely looking forward for more wheat purchases up to one million tonnes but they were worried over uncertain exchange rate.

He said future imports depend on Russian and Ukraine wheat prices and also rupee-dollar parity. Traders and millers are making enquiries for December shipment but are nervous whether to strike a deal or wait for dollar’s stability.

One ship carrying 55,000 tonnes of Russian wheat had already arrived at the outer anchorage of the port while two to three ships carrying 45,000-60,000 tonnes of wheat each are arriving next month.

Published in Dawn, August 28th, 2014