KARACHI, Feb 26: Wheat crisis in Sindh has deepened further with retail price of atta (No. 2.5) going up by Re1, from Rs15 per kg on Wednesday to Rs16 per kg on Thursday. It was available at Rs12-13 per kg till February 1.

Similarly, the price of fine atta has also surged to Rs17 per kg from the earlier price of Rs16 per kg. It was also being retailed at Rs15 per kg till February 1.

The 10kg bag of fine atta (Ashrafi Brand) is now selling at Rs 150 as compared to Rs145 earlier in this month. Meanwhile, the city government has received reports of riots in New Karachi over flour prices and shortage.

According to the EDO Enterprise and Investment Promotion Raeesuddin Paracha, his officer had informed him that some people, including women, resorted to snatch flour bags on sale at a special stall set up in New Karachi's Sector 11-E.

He said his executive director had also conveyed him that in Defence Phase IV area, a senior official of the DHA had stopped the city government and flour millers' representatives to sell flour. The DHA official told them that the DHA policy did not allow setting up of such outlets in its commercial areas.

He asked the stall operators to move along with their merchandise to some other area dominated by low-income group, said Mr Paracha who quoted the DHA official as saying that "people of DHA do not seek flour at reduced rates."

Though minor, rioting over flour crisis appeared alarming amid reports of demand that wheat be acquired from Punjab. However, the Sindh government seems waiting for the arrival of fresh Sindh crop expected next month which, it believes, would help end the crisis. In the meantime, consumers would have to brave the situation.

General Secretary of the Karachi Retail Grocers Group (KRGG), Mohammad Farid Qurieshi said that the price of an 80kg bag of atta No. 2.5 had peaked to Rs1,150 as compared to Rs975 on February 18, showing a rise of Rs 175.

A 100kg bag of wheat is now tagged at Rs1,200-1,250 as against Rs1,120-1,130 on February 1. Surprisingly, Sindh Food Minister Arif Mustafa Jatoi was quite satisfied with the current situation during a visit to some bazaars, saying that atta was selling at normal rates and ample wheat stocks were available in government and private godowns.

On the other hand, flour millers have been accusing the provincial government of not releasing proper wheat allocation to the millers. The recent rejection of two Australian wheat consignments totalling around 80,000 tonnes on ground of karnal bunt fungus at a time when the province was undergoing wheat crisis has further caused price escalation.

The city government seems absolutely helpless in taking any strict action against the profiteers since its officials do not have magisterial powers. The city government's Enterprise and Investment Promotion Group of Offices has been seeking magisterial powers for DDOs (Revenue) in order to carry on the price control mechanism allowed to it for the month of Ramazan only.

However, the provincial government is not responding to the request positively. At the same time, it blames the uncontrolled price-hike and lack of monitoring and checking on the city government.

The CDGK, in the absence of magisterial powers for its DDOs, seems reluctant to come hard on profiteers. The federal government has been watching the situation from sidelines, instead of intervening into the affair in the interest of common man.