ISLAMABAD, July 20: The federal government has proposed to Sindh to sell its wheat stocks at Rs430 per 40 kg, which analysts fear is very high and may push up flour prices in the province. Pakistan Agricultural Supplies and Services Corporation (Passco) and the Punjab province will, however, fix wheat prices on their own and will not be less than that of Sindh.

Secretary Minfal Ismael Qureshi while talking to newsmen here on Thursday confirmed the proposed indicative price. "Provinces have to decide on their own how to fix their wheat prices. However, the ministry has proposed this indicative price to Sindh, which is very reasonable," Mr Qureshi added.

He said the indicative price would stabilise the rate of wheat flour in the province. However, independent analysts were of the view that the price was quite higher and would ultimately jack up flour prices.

Sources in Minfal said the price indicated to Sindh was much higher because farmers in the province were not even able to get the Rs415 per 40 kg minimum price announced by the government.

The wheat stocks available with Passco and Provincial Food Departments were procured at around Rs370 to Rs380 per 40-kg below the minimum fixed price.

Even in some cases, Passco and Punjab Food Department had procured wheat at Rs360 per 40-kg.

Representatives of farmers have already informed Minfal about the crisis and the issue has also been taken up by the National Assembly standing committee on food, agriculture and livestock at its recent meetings.

The standing committee on Thursday told Federal Food Minister Sikandar Hayat Bosan that the food ministry had been failed to ensure reasonable prices to wheat farmers in Sindh and Punjab provinces.

According to government statistics, on July 16 public sector agencies possessed 6.547 million tons of wheat against the last year’s stock of 4.164 million tons.

This year, the procurement agencies had procured 4.514m tons as compared to last year’s procurement of 3.938m tons.

The government stocks also included the carryover stocks from last year.

Local farmers were unable to get good prices for their wheat during the last season due to the government’s move to import.