LAHORE, Dec 30: Wheat demand in the country has come down with snowfall blocking the smuggling routes, wheat from Iran and Central Asian states making way into Afghanistan and bordering areas and rumours of crop creeping into Pakistan from East Punjab.

This was claimed by the Punjab Food Department and Pakistan Flour Mills Association officials, here on Tuesday. “But, it remains to be seen whether the dip is temporary or forms a long-term pattern,” they add.

The Eastern Punjab has also reportedly sought permission from the Indian government for exporting wheat to the Pakistani part of the province.

Meanwhile, the Punjab Food Department plans to increase wheat release by 1,000 tons daily from Thursday (tomorrow) —- from 12,000 to 13,000 tons —- with the hope that the flour price will be further stabilized.

The department is also planning to progressively increase the wheat release to 15,000 tons a day by early February, around 80 per cent of total consumption of 18,000 tons in the province. Even after meeting the increased supply, the department would still be left with 100,000 tons as an opening balance the next year and any addition from import would further improve the situation.

The overall wheat and flour position in the country has eased because Sindh has lifted 40,000, out of total allocation of 60,000 tons, says Punjab Food Secretary Shahid Husain.

The remaining 20,000 tons should ease situation in Sindh in January, and Pakistan would get first consignment of imported wheat in the first week of February. It should enable Sindh to see the season through smoothly, he hopes.

He says there are reports of around 1,600 tons of wheat and flour still going from the Punjab to Sindh daily.

Punjab Food Department Director Jawad Rafique believes news of import, rumour of unofficial supply from India and snow in the Northern Areas have helped ease pressure at a time considered to be peak-demand season.

“It has surprised all the wheat watchers and brought the price down a bit. Now, wheat in most part of country is available at Rs380 to Rs390 per 40kgs, a decrease of Rs20 to 30, considering earlier Rs410 per 40 kg.

Hoarders are bringing their stocks out in the market, fearing further slide in prices. This will help stabilize situation,” he predicts. An official of the PFMA maintains that prices have stabilized at the peak of the season. “Had the food department not delayed the wheat release right up to Oct 10, wheat market could not have experienced such fluctuations.”

He says it will be too early to give reasons for price slide. All the factors that department claims may have contributed a bit or the private sector may have lost patience and open gates of their stocks. But, certainly, a temporary phase has hit the market, the official adds.

“The easing of pressure on wheat only proves the PFMA point, which it has been making all along that the government should immediately import wheat to release speculative pressure on the crop, he claims.

“The government could have contained the crisis if it had decided to import wheat in late November or early December. But it delayed the decision because it was misled by its own members about the crop size in the country.”

The government, however, did ask the private sector about wheat situation in mid November and it was told clearly that import of wheat up to one million tons was a must to keep domestic market in control, but its procrastination let the wheat and flour prices into tail-spin and the consumer paid the price.