MULTAN, Dec 29: Despite the tall claims by the government officials that there is no demand-supply gap viz-a-viz wheat stock, the prices of wheat flour in the four corners of the country are sky-rocketing.

According to a study carried out by the agriculture and livestock production, marketing and grading wing of the federal agriculture ministry, the per kilogramme prices of wheat flour in various parts of the country in the mid of December were as: Karachi, Rs14; Hayderabad, Rs13; Sukkur, Rs13; Multan, Rs11.5; Faisalabad,Rs12; Lahore, Rs11.5; Rawalpindi, Rs11.5); Peshawar, Rs11 and Quetta, Rs14.25.

The market observers are perplexed that if the country has enough wheat stocks to meet the food requirements of its population then why the prices of wheat flour have soared to their all time high levels?

It is ironical that the government is releasing its stock to the flour millers at a price Rs335per 40kg but the prices of wheat flour are ranging from Rs420 to Rs460 per 40kg in various parts of the country while the grinding cost of the millers is said to be not more than Rs25 per 40kg, which they normally covers by extracting ‘Suji’ and ‘Maida’ during the wheat grinding process.

In the last couple of years when the government used to release wheat from its stocks at Rs330 per 40kg the millers were selling its flour at Rs340 to Rs360 per 40kg. The market observers say that how it come that the prices of wheat flour have increased by Rs100 per 40kg with an increase of only Rs5 per 40kg by the government on its releases.

APP adds: A spokesman of the Ministry of Food & Agriculture (Minfal) has termed the wheat situation in the country as quite satisfactory.

Explaining the wheat situation, the spokesman said, wheat production for 2002-03 was estimated at 19.2 million tons and the carry forward stocks from the last year stocks were 1 million ton. It made the total at 20.2 million tons while the country’s requirement for 2003-04 is 19.7 million tons.

The spokesman said that wheat procurement targets for 2002-03 were fixed at 5.3 million tons. Both public and private sectors were actively engaged in wheat procurement through cash credit limits provided by the banks. Public sector procured 3.5 million tons while the remaining market surplus of wheat was procured by the private sector. In beginning of the year with the carry forward stock of 1 million tons, the public sector stock were piled up by 4.5 million tons. Both public and private sector were releasing their wheat stocks in the market side by side.

The spokesman said that in beginning of November this year, the public sector stocks were 3.4 million tons and the information collected from the State Bank show stocks of 0.529 million tons with the private sector.

Minfal felt that these stocks were sufficient for country’s requirement up to the end of the current food year. But to add up strategic reserves, Minfal submitted a summary for import of 0.5 million tons wheat which has been approved by the ECC. Presently on December 21, the stock position was 2.36 million tons.

If the private sector stocks are added up with public sector stocks the quantity available will be sufficient for the current food year. However, Minfal is taking care of wheat deficiencies in the provinces through Passco stocks. The present wheat situation is satisfactory, the spokesman added.