LAHORE, Feb 21: Imported wheat has started arriving in Punjab and market watchers hope that the local market will relax soon.

According to Pakistan Flour Mills Association sources, of 45,000 tons of wheat, which arrived at Karachi on Feb 14, 38,000 tons have been sent to Punjab. The remaining 7,000 will be dispatched by Tuesday (today), they added.

Another ship, carrying 45,000 tons of Canadian wheat, has arrived Karachi and will be berthed in two days. With the arrival of 90,000 tons, the total would touch 155,000 tons. The government has decided to import 500,000 tons of wheat for Punjab. The rest 345,000 tons will arrive before March 1.

A food department official said it was currently releasing some 18,000 ton wheat to millers daily, which is more than enough for the entire urban population of Punjab, which needed only 15,000 tons flour. Even this figures leaves a margin of 3,000 ton finding its way to other provinces. "With more wheat arriving, the department plans to further liberalize releases, may be up to 21,000 ton daily or, even, beyond."

According to a PFMA official, it will be hard for the department to keep this imported wheat for long because of fumigation and storage problems. It will prefer to release wheat as soon as it arrives and keep storage free for next season.

It will be in a hurry to release wheat because of the changed situation. When the government ordered import of wheat, he said it was scared due to drought-like conditions prevailing in the country.

The current wet spell has changed the situation and now government officials are confident that the country will achieve, if not cross, the target of 20.2 million ton wheat for next season. So, it will prefer to release as much wheat as possible before the arrival of new crop in April, he added.

Mr Khaliq Arshad of the PFMA thinks that price of a 20-kg bag can fall by Rs10 once wheat arrival gains momentum. According to him, a 20-kg bag is now selling for Rs235 to Rs240. It can easily come down to Rs225 to Rs230. Price went up on speculative pressure.

The new arrival will take that pressure off the crop now and market may adjust quickly to new realities. It may also encourage hoarders or stockists, if any, to release their stocks as well.