KARACHI, Dec 7: Retailers on Thursday pushed up the rates of various flour varieties by Re1-Rs2 per kg following fresh increase in wheat prices to Rs1,820 per 100 kg bag from Rs1,770 on Wednesday. The wheat was selling at Rs1,700 on Tuesday.

The price of 80-kg atta, produced by mills, surged to Rs1,525 from Rs1,450 few days back. Retailers were quick to pass on the rise in wholesale rates to consumers by jacking up per kg price to Rs22 per kg, from Rs21. They were selling Chakki atta at Rs24 as against Rs22 per kg earlier this month.

The 10-kg bag of Ashrafi Atta was now being retailed at Rs220 against Rs210.

The rising price difference with the retail market would attract more buyers at the utility stores where consumers had already been facing ordeal of standing in long queues for procuring subsidised items particularly wheat flour. Utility stores offer 10 kg atta bag at Rs130.

The rise in atta prices has come at a time when the caretaker government has issued orders to the provincial food departments for increasing the wheat supply to Sindh and Punjab flour millers. But millers and market people think the increased supplies of wheat would not match the rising atta demand during the winter season.

However, no serious efforts have so far been made for checking the smuggling of wheat and flour to Afghanistan and other neighboring countries. The imposition of 35 per cent regulatory duty on wheat export has legalised its smuggling, they observed. Previously, wheat export was completely banned.

General Secretary Karachi Retailers Grocers Group (KRGG) Mohammad Farid Qureishi said that the caretaker government still appears least bothered in taking any serious measures in controlling the skyrocketing wheat and atta prices.

He said that millers were not getting the required quantity of wheat from the food departments while there had been a slump in arrival of wheat from Punjab.

In sharp contrast to Sindh, the situation of atta in Punjab appears under control.

Pakistan Flour Mills Association (PFMA), Punjab Zone, chairman Haji Maqsood Ahmed told Dawn from Lahore that wheat bag of 40 kg was now being quoted at Rs640 in the wholesale market as against Rs620 some 10 days back.

Despite shortage of wheat, he said mill atta rate had been tagged at Rs295 per 20 kg bag.

He said the government had increased the supply of wheat to 17,500 tons per day, to 640 mills in Punjab, as compared to 14,000 tons per day.

“The increase in wheat supply from the food department has been insufficient to meet the rising demand. Last year mills were getting 22,000-23,000 tons a day,” Maqsood said, adding that atta consumption from December to February would remain high across the country.

Surprisingly, he refuted the market reports that wheat and flour were being smuggled out to neighbouring countries. “There has been no smuggling. The real problem is short supply from the food department,” he added.

Karachi Wholesale Grocers Association (KWGA) chairman Anis Majeed said that consumption of atta increased by 30 per cent in winter season and it seemed that the millers in the city were still facing problems in getting sufficient quantity of wheat from the food department.

He said that arrivals of wheat from Punjab fell sharply for the last few days despite the fact that there was no restriction on inter-provincial movement of wheat. “There has been an increase in wheat smuggling,” he pointed out.

He said on November 30, the government had allowed wheat export after paying 35 per cent duty. The wheat price in international market is over $500 per ton and keeping in view the local rate of Rs1,800 per 100-kg bag it comes to $250-$275 per ton and market manipulators still find it feasible in shipping wheat to Afghanistan and other countries after having paid 35pc duty.

Chairman Sindh Zone of PFMA, Chaudhry Ansar Jawed said that the government had actually legalised the smuggling of wheat by allowing it at 35 per cent export duty. “Vested interests are still saving $100-$150 per ton on wheat export after paying the regulatory duty which has encouraged its smuggling and there has been no check at the borders on its movement,” he lamented.

He said that the government either should have suspended the export of wheat completely or imposed 75-100 per cent export duty to discourage its smuggling,” he added.