KARACHI, April 29: Millers in Karachi want the Sindh government to allow them purchase wheat from Dadu and Nawabshah districts as they are not able to procure wheat from Thatta, Badin and Mirpurkhas for which they have been issued permits by the food department.

After imposing restrictions on inter-district movement of wheat, the food department has issued permits to many local mills for purchasing wheat from farmers in these three districts.

“All wheat has either been sold or retained by farmers in these three districts,” Pakistan Flour Mills Association (Sindh) Chairman Iqbal Daud informed Dawn from Islamabad.

Iqbal Daud attended a meeting of the federal food committee in Islamabad on Tuesday where he demanded that Karachi millers be allowed to purchase wheat from Dadu and Nawabshah districts.

He also sought permission to allow Karachi millers to keep stocks for nine days in factories.

Wheat prices in open market in Karachi crawled up to Rs1,850 for 100kgs on Tuesday as supplies from districts became scarce because of the ban on wheat movement.

“More than 100 miles way from wheat growing areas, Karachi remains the biggest grain market of the country that include wheat,” a Jodia Bazaar merchant said who pointed out that all grains reach here in the face of all restrictions.

“Restrictions increase prices,” he said to justify a rise of Rs20 to 25 in 100kg bag of wheat prices in the last 24 hours.

The food department is reported to have procured about 299,000 tons of wheat by Monday at Rs625 for 40kgs and is finding some difficulties in procurement.

The department has still to procure about 300,000 tons of wheat in the next few weeks which appears to be a tough job.

Grain merchants from all over the country have their close business links with local arhti at tehsil and deh level in wheat growing areas and have their own arrangement of piling up stocks of wheat in ginning units, vacant buildings of schools and basic health units and other places.

The Punjab food department, too, has imposed an inter- district and inter-provincial wheat movement to ensure procurement of five million tons of wheat in the next six weeks or so.

Grain merchants in Karachi and Lahore report that Pakistani wheat was being transported to Afghanistan and even beyond despite all these restrictions because of attractive prices.

Last week, the grain market in Karachi was abuzz with rumours that the government might consider pushing up support price for farmers to Rs700 or Rs750.

“We have no such plans,” said Federal Finance Minister Ishaq Dar in a firm tone.

He said the government knows about a shortfall of 0.9 million tons of wheat in the next fiscal year.

“We plan to import 1.5 million tons of wheat,” he disclosed, but quickly added that the government was waiting for a final crop assessment before implementing its wheat import programme.

India is reported to have grown 75 million tons wheat and the government is confident of building up a reserve of 15 to 17 million tons.

But globally there is a wheat shortage and prices are spiraling which is forcing governments to take both fiscal and administrative measures to tackle wheat smuggling.