KARACHI, July 4: The retail price of atta (no.2.5) has finally surged to Rs16 from Rs15 per kg following fresh increase in its wholesale rate to Rs1,190 per 80 kg bag on Wednesday from Rs1,150 on Monday.

Atta had become costlier as a result of increase in 100 kg wheat bag price to Rs1,270 on Wednesday from Rs1,230-1,235 on Monday. The wheat bag was selling at Rs1,180 prior to 2007-08 budget. After the budget, it rose to Rs1,200-1,210. Similarly, 80 kg atta bag was available at Rs 1,130 on Saturday.

General Secretary Karachi Retail Grocers Group (KRGG) Farid Qureishi said that the government should now intervene by releasing wheat stocks to the millers so that prices could be controlled.

He said some vested interests in the market had been hoarding wheat in larger quantities aimed at making windfalls in times of rising prices. The government should check the hoarding. Besides, he said that exporters were also holding back heavy consignments after the ban on wheat export in May.

Meanwhile, a meeting between flour millers and officials of the ministry of food, agriculture and livestock (Minfal) was held in Islamabad on Wednesday to review the wheat and atta related issues including fixing of wheat issue price and final production figures of wheat for this season.

Chairman Pakistan Flour Mills Association (PFMA), Sindh circle, Ansar Jawed said the millers had urged the Minfal to issue orders to the provinces to release wheat stocks to the millers in order to arrest the soaring prices.

Usually Sindh releases its wheat stocks to millers in August while Punjab releases its stocks in September.

He said that Secretary Minfal Zia ur Rahman was of the view that hoarding by some market people had resulted in pushing up prices. He said that the secretary had informed the millers that exporters had also got huge consignments of around 700,000 tons, which could not be shipped because of ban on export.

Ansar said that the association had informed the secretary that exporters were now releasing the stocks in the markets after seeing increase in prices. He said exporters had got less than 100,000 tons in hand and they were showing fake L/Cs to the government in order to build up pressure for removing the ban.

He said that the Minfal secretary hinted that the government was likely to come up with final wheat crop size in the next 15 days. Meanwhile, he said that the issue price of wheat was likely to be announced either before the final production figures or after it.

Sindh has so far procured 575,000 tons of wheat against a target of 700,000 tons while Punjab has procured 2.6 million tons against the target of 2.7 million tons. Passco has so far procured 1.3 million tons.

It is interesting to note that the government’s decision to ban wheat exports in May has failed to bring any stability in wheat and atta rates. Market sources said that some millers and exporters were equally involved in hoarding of wheat and they were not releasing the stocks in the market.

If increase in wheat and atta prices continues, the consumers will have to bear another burden when makers of bread and its related items, will come out with a fresh increase in price. Even many flour millers have opened bread producing units. It is likely that makers of naan, chapati (roti) and sheermal, will also follow the suit.