KARACHI: The price of imported wheat on Monday rose by around Rs2 per kg despite arrival of two vessels carrying over 125,000 tonnes in the last 12 days, while the third vessel loaded with 69,000 tonnes will dock at the Karachi Port on Tuesday.

The imported wheat is now selling at Rs47.50 per kg compared to Rs45-46 per kg while the rate of locally-produced wheat has reverted to Rs51 per kg from Rs48 per kg.

Local wheat rate had fallen to Rs48 from Rs52 in the last week of August following arrival of first Ukrainian wheat consignment.

Cereal Association of Pakistan Chairman Muzzamil Chappal said traders had booked 600,000 tonnes of wheat at an average price of $235 per tonne but Ukrainian wheat is not available after its price shot up to $250 per tonne triggered by rising buying activity from Indonesia and Egypt.

Around 40-50 per cent of imported wheat is being consumed in Karachi while the rest is finding its way into Khyber Paktunkhwa and Punjab where its rate hover between Rs53-56 per kg due to higher transportation cost, he said dispelling the market impression that all imported wheat consignments are destined for upcountry.

When asked over the benefit of wheat import in view of price hike, Muzammil said if wheat imports had not been streamlined, the price of locally-produced wheat would have gone to Rs70 per kg resulting in massive price jump of flour to around Rs100 per kg.

He said flour price would stabilise when Sindh government would start releasing wheat to millers followed by arrival of over 300,000 tonnes of wheat next month being imported by the Trading Corporation of Pakistan.

Pakistan Flour Mills Association (Sindh Zone) Chairman Khalid Masood said he had met Sindh Food Secretary Laeeq Ahmed on Monday to discuss issues relating to issuance of locally-produced wheat to flour millers.

He urged food secretary for quick release of wheat to control rising prices in open market as well as flour varieties. Sindh government had procured 1.25 million tonnes of wheat from growers this year.

Masood said that Secretary Ahmed had hinted at issuing wheat to millers by mid-September after fixing of issue price by the Sindh cabinet.

Millers had reduced flour prices by Rs2 per kg prior to the arrival of the first ship carrying 60,000 tonnes of Ukrainian wheat.

However, retailers said the price would again crawl back to high rate after rising prices in the open market.

A group of four to five millers had also booked 65,000 tonnes of Ukrainian wheat at the rate of $227 per tonne whose landed cost would be Rs43-44 per kg. The ship would arrive in the last week of October.

Provincial Food Minister Hari Ram Kishori Lal on August 31 said the Sindh Food Department had adequate stocks of wheat to meet province’s demand and soon wheat supply on discounted rates to flour mills and atta chakies would be started so that domestic and commercial consumers do not face any difficulty in obtaining flour.

Wheat would only be provided to those flour mills and atta chakies which are on the roster of food department, he said adding that the Sindh cabinet would soon announce official price for flour mills.

Published in Dawn, September 8th, 2020