KARACHI, May 9: Retailers increased flour prices on Friday by Rs3 to 4 per kg. Accordingly, chakki atta is being sold at Rs26-28 per kg, fine atta at Rs27-28 and atta No.2.5 (mill atta) at Rs26-27 per kg.

These varieties were available at Rs24, Rs24 and Rs22 per kg on May 1.

In residential areas, retailers were charging Rs265 for 10kg bag of Ashrafi fine atta as they claimed to have bought it at higher rate from the millers. Last week, it was selling at Rs240-250.

However, in some areas retailers were demanding Rs30 per kg for chakki and fine atta.

As there is no shortage of mill atta and fine atta and retailers have enough stocks in their shops and godowns, the rising prices are bothering the consumers because flour is the main staple food for them. On the contrary, there has been shortage of chakki atta in the markets for the last few days.

A retailer blamed the flour millers for pushing up the rates. He said that the mill atta was available at Rs1,725 per 80 kg bag three days back, which is now priced at Rs1,850-1,900.

He said that there was virtually no fixed rate of wheat in the open market on Friday but it was quoted at over Rs2,000 three days back.

A flour miller told a different story behind the price increase. He said the actual rate of 80 kg bag of mill atta is now Rs1,825 and not Rs1,850-1,900 as claimed by the retailers.

Former chairman Pakistan Flour Mills Association (PFMA), Shaikh Akhtar Hussain said that the 100kg wheat bag price had fallen to Rs1,920-1,930 from over Rs2,000 owing to government’s decision on Thursday allowing wheat supplies from Nawabshah and Sanghar.

However, he said that the supply of wheat from Mirpurkhas, Badin, Hyderabad and Thatta had not been smooth and not as per mills’ requirement. The supplies from the interior Sindh have to pass through the four check posts, where officials of the food department, Police and Rangers had been posted for a check.

“Due to insufficient supply of wheat in the open market, around 50 per cent of the flour mills are closed for the last four days, out of 72 mills in Karachi,” he said. Due to uncertain supply situation, some flour mills had got 1,000-1,500 bags of 100 kg wheat, while others were sitting idle.

He said that the food department had already stopped the issuance of wheat to the flour mills up to August 15.

The government has also allowed import of 250,000 tons of wheat after the prices in international markets had fallen to $297 per ton from $600.

Mr Akhtar said even if the prices of imported wheat further fall to $250-255 per ton, its price (from import to local godowns) will reach Rs3,000 per 100 kg bag. The government will have to provide subsidy to bring down the rate.

Karachi Atta Chakki Association (KACA) president Abdul Sattar said that around 60 per cent chakkis, out of 1,500 in the city, were closed for the last one week, thus resulting in shortage of chakki atta in the markets.

Giving the reasons, he said that the Sindh government had restricted the selected traders in Sindh, including Karachi to sell wheat to the chakki operators for 60 days from April 23. At the same time, the chakki owners had been asked to purchase wheat from the growers of interior Sindh. He added these traders used to provide wheat to the chakkis after cleaning.

However, for the last one week, the chakki owners were facing problem in getting wheat as it was not freely available. Even if available, its rate is high at Rs22-23 per kg.

Mr Sattar said it was not feasible for all the chakki operators to go to the interior Sindh. For example if a chakki operator is using only 50 bags of 100 kg a day, how he could take a long trip to the interior to buy this limited quantity. From the growers he has to procure wheat in large quantity, he added.