HYDERABAD, May 23: Price of per kilogram wheat flour has shot up by Re1.50 on shortage of wheat created by hoarders, failure of food department to meet procurement target and supply to flourmills and unhindered export of the commodity.

Growers and flourmill owners believed the rise witnessed in the city during last couple of days was caused by hoarders who had stocked up the commodity to earn windfall profits out of food department’s failure to meet procurement target.

Retailers said that they were buying flour for Rs14 and Rs14.50 per kilogram from wholesalers while the latter said that they were faced with a serious situation due to non-supply of wheat from the food department.

There are credible reports that Sindh government had fixed wheat procurement target at 0.7 million tons while the department managed to procure only between 0.5 million to 0.57 million tons with a considerable difference of around 2.5 million tons.

"Around 0.6 million bags of 100kg each are stocked in the Bholari and Hali road godowns operated by food department, which can cater to the needs of Hyderabad for two months," said Haji Mohammad Nawab, president of Atta Chakki Owners Association.

He foresaw further surge in prices over the next few weeks as he believed wheat had been stocked up by hoarders. Besides, the flourmills were not getting any wheat from the food department for past several months under government directives, he said.

District food department official Abdul Malik Abbasi was not available for comment.

Large number of wheat bags were damaged in Bholari and Hali road food grain godowns in the wake of last year’s heavy rains in September. The department ordered an inquiry into the damage but its findings were never made public.

The Sindh Abadgar Board (SAB) President Abdul Majeed Nizamani said that production of wheat this year would exceed annual consumption of the country, which was around 19.5 million tones apart from one million ton of wastage and one million ton for feed purposes.

He expected the consumption to touch 23 million tons mark. He shared Haji Mohammad Nawab’s belief that traders and hoarders had stocked up wheat after the food department failed to meet procurement target.

PPI adds: Price of per kilogram wheat flour has gone up by one and a half rupee due to closure of 80 out of 200 flourmills in the district over non-provision of wheat by food department and unhindered export of wheat.

Atta Chaki Owners Association President Haji Nawab Ali said that traders were purchasing wheat directly from growers and then exporting it. “This has created shortage of wheat in local market and sent its price to roof from Rs1,100 per bag to Rs1,200 per bag.”

He demanded wheat supply to the flourmills to avert the imminent flour crisis.

SAB President Abdul Majid Nizamani said that if the government failed to stop smuggling of wheat to India, Afghanistan and Iran it could avert what could b the severest flour crisis in the province.