KARACHI, Dec 2: Both the flour millers and government officials say that there is neither any shortage of wheat nor of flour but retail prices of wheat and flour in domestic market have touched unbearable limits.
Prices of wheat and flour touched new heights in the local markets immediately after Eid amidst reports that Sindh government is asking Islamabad for immediate import of 300,000 to 500,000 tons of wheat. An instant impact of this price rise has come on breads and nans in small road side hotels where consumers or workers who now pay one rupee to Rs2.50 to 3 per bread.
But there are market analysts who wonder as to why Sindh government should go for wheat import when provincial food minister and top bureaucrats had on record stated that there was enough wheat in stocks.
Flour prices in the market now ranges from Rs12 to Rs15 a kg, which, the retailers say, is unprecedented. “Flour prices did not go beyond Rs13 a kg during February and March 1997 when country witnessed the food riots for the first time,” a retailer at Soldier Bazar market recalled. He concedes that there was ample flour available but at a price fixed by market at Rs14 a kg.
Prices of wheat has shot up to Rs1,125 to Rs1,130 for a 100 kg bag in the market and millers blamed the provincial government of denying them wheat of last seasons crop from its stocks which forces them to buy from market and hence the escalation in flour prices.
“Wheat supply in Karachi just matches the demand and it is an ideal situation for the profiteers to take advantage,” the Sindh food department secretary told Dawn. “But what are you doing?” the secretary was asked by this correspondent. “I watch ex-mill price of the flour that comes from mills,” he replied.
Officials say that price monitoring is the job of the city government and their duty was to provide wheat from government stock at issue price of Rs830 for a 100 kg bag.
“A combination of government officials, a few millers- cum-commodity brokers and wholesalers have worked together to push up the wheat and flour prices,” a market analyst said.
Leaders of the millers Malik Naeem and Iqbal Qandhari confirm that a few millers from among their ranks are operating as wheat brokers. “They buy wheat at Rs830 for a 100 kilogramme bag from government and sell it at Rs1,100 in the market,” one of the leaders said.
Millers are supposed to deposit their electricity bills to the Sindh Food department while asking for wheat from the government stocks. This is done to verify the electric consumption for wheat milling.
Officials confirm that millers are depositing electricity bills. “But since when it has become difficult in Karachi to tamper with electric meter reading or get a desired electric bill,” an official sarcastically remarked.
In short, the officials in the Sindh government looked helpless in tackling a situation where according to them there was no shortage of wheat or flour, they concede that prices are soaring and that they are helpless.
Malik Naeem said that team of senior officials of federal government visited Karachi about two weeks to examine provincial government’s demand for 300,000 tons of wheat from Passco. They found that commodity operators in Karachi and Punjab have borrowed roughly Rs10 billion from banks which have remained unpaid. “It means that there is one million tons of wheat available in the market,” Malik Naeem said.
Confusion grips wheat and flour market with no explanation from the federal and provincial governments.