Flour prices may go up as Karachi-bound grain trucks being stopped
KARACHI: The prices of wheat flour may come under pressure as millers have complained to the Sindh food minister regarding interception of trucks carrying grain from various districts of Sindh to Karachi.
The Sindh government had banned the purchase of wheat by private flour mills from Badin, Sujawal, Thatta and Mirpurkhas. However, lifting of wheat from other districts is allowed.
Pakistan Flour Mills Association (Sindh zone) chairman Khalid Masood said he had first taken up the issue regarding interruption in wheat supply to Karachi on April 11 but it was resolved by the government on April 15. However, the issue had resurfaced from April 17, he added.
In a letter to the food minister on April 21, he said some trucks were being released by the authorities after reportedly taking bribes especially in Hyderabad while others were unloaded at wheat purchasing centres and warehouses.
As a result, the price of a 100kg bag in the open market had increased to Rs3,650 from Rs3,500.
The price of a 100kg wheat bag increases to Rs3,650 from Rs3,500
However, millers had reduced price of various flour varieties by Rs5 per kg in the second week of April due to a decline in the wheat rate to Rs3,500 from Rs4,000 per 100kg bag in the open market.
The current rate of flour No 2.5 is Rs42 per kg while fine and super fine flour rates are Rs44 per kg.
“We have not yet increased the price of flour on rising wheat price in the open market,” Mr Masood added.
He said a smooth supply of flour in Karachi would become difficult if the practice of intercepting trucks carrying wheat continued.
This would also result in a price hike in flour varieties ahead of Ramazan if the issue was not resolved permanently, he warned.
He said millers were dependent to buy wheat from the open market till September/October.
The Sindh government in this season had decided to procure 1.4 million tonnes from growers at a rate of Rs1,400 per 40kg and so far it has lifted 400,000 tonnes.
The provincial government releases wheat to the millers when the grain starts drying up in the open market.
The PFMA chief urged the Sindh government to lift inter-district wheat movement restriction within the province except the four districts. This would help ease the food department’s procurement campaign in achieving the target smoothly.
Published in Dawn, April 22nd, 2020