KARACHI, Dec 26: The Punjab government’s decision of imposing ban on movement of wheat to other provinces has pushed up wheat and flour prices here.

Flour millers and retailers quoted different rates after the increase in prices. Retailers said that wheat price had surged to Rs2,000 per 100kg bag on Wednesday after its shortage in the open market. However, a miller claimed that the price had peaked to only Rs1,920 as compared with Rs1,810 on Monday and Rs1,750 some 15 days back.

The miller said flour produced by mills was still tagged at Rs1,525, while retailers said that the millers had pushed up the rates to Rs,1600 per 80kg bag.

The market players and stakeholders had been playing havoc with the prices but neither the federal nor provincial governments moved to rescue the common man.

The federal government was of the view that providing subsidised flour at Rs130 per 10kg bag to the consumers at the utility stores would be enough for the general public but only a fraction of the population was benefiting from the stores after standing in long queues. There was also a big gap between demand and supply at the stores.

In the second week of the current month, the rate of wheat bag had surged to Rs1,900 but it later came down to Rs1,750. Millers had already pushed up the flour rates to Rs1,525 from Rs1,450 per 80kg bag.

After the decline in wheat price, many flour millers, interviewed by Dawn, had promised reversal of the rates depending on increase in wheat quota by the Sindh government. However, despite increase in wheat quota coupled with decline in its price, they had not yet passed on the benefit to the consumers and now they seem willing to raise the price if increased wheat supply is not ensured.

Chakki atta is still selling at Rs24-25 per kg as compared with Rs22 in the first week of the month.

Karachi Retail Grocers’ Group (KRGG) general secretary Mohammad Farid Qureishi said a leading producer of fine atta was now quoting the rate of Rs230 for a 10kg bag. How could it be sold at lower rates on the retail side, he asked. Ashrafi atta’s 10kg bag now sells at Rs220. It was available at Rs210 two weeks back and at Rs200 on Nov 1.

He said the wheat and flour rates in the markets had surged after the ban on wheat movement to Sindh. He said the government still did not appear serious in addressing the consumers’ interest as it was busy with other issues, like elections.

Shaikh Akhtar Hussain, Executive Committee Member of the Pakistan Flour Mills Association, Sindh Circle, said the millers had not increased the rate yet despite increase in wheat price to Rs1,920 per 100kg bag.

He said millers would meet Sindh government officials on Thursday to seek increase in allocation from Ukrainian wheat. He said big mills would seek at least 3,500 bags per week as compared with the current 2,730 bags.

In case the millers did not get the increased allocation, the rate of flour produced by mills would rise to Rs1,600 from Rs1,525.

He said about 72 mills in Sindh had been getting 50,000 tons of wheat per month from Punjab. From Wednesday, the supply had been suspended.

He said Punjab had suspended wheat movement to control the price and it had doubled supply to the flour millers.