KARACHI: The reduction in flour prices by Sindh millers in the first week of this month proved to be temporary relief as the rate of flour (no.2.5) has been raised to Rs38 per kg from Rs37 per kg, and the prices may go up further in the coming days.

The millers had cut the rate of flour (no.2.5) to Rs37 from Rs42 per kg while the rate of fine flour was reduced to Rs41 from Rs45.50 per kg. The rate of Bake Parlour and Ashrafi 10kg flour bag was decreased to Rs430-440 from Rs450-470. The main reason of the reduction was frequent arrival of wheat from producing areas coupled with decline in wheat prices to Rs3,050-3,100 from Rs3,700 per 100 kg bag.

Chaudhry Mohammad Yusuf, the chairman of Pakistan Flour Mills Association’s (PFMA) Sindh chapter, said the provincial government has stopped movement of wheat from Sindh producing areas to Karachi especially.

“Around 25 per cent of mills out of 85 in Karachi have shut down their operations due to non availability of wheat. Some mills have two days of wheat stocks which will also go dry,” he added.

Wheat price in the open market has also risen to Rs3,250-3,300 per 100 kg bag from Rs3,050-3,100 per 100 kg bag which may cause another price jump by Re1 to Rs2 per kg in coming weeks.

He said wheat brokers and traders, who lift the grain from growers in interior Sindh, had suspended their transportation operations from April 17 to Karachi which is not a producing area.

Officials posted at many Sindh check post were demanding hefty bribe of Rs10,000 per vehicle carrying wheat for Karachi destination, he added.

“The Sindh government is responsible for creating wheat and flour crises and has snatched a price relief which the millers offered to the end users,” he said, lamenting “discrimination against the people of Karachi”.

According to him, officials of the Excise Department and the police have also joined hands as they are not allowing vehicles carrying wheat at Kathore, Interior Sindh for Karachi.

He said PFMA office-bearers met Sindh Food Department officials on Saturday to resolve flour and wheat crises, but to no avail. As a result, all the Sindh flour mills would decide future course of action on April 21, he said.

The Sindh Food Department would procure 1.3 million tonnes of wheat from the growers in the next two to three months. To meet the procurement target, all the trucks carrying wheat are being diverted to Food Department warehouses instead of Karachi.

The Sindh government has already enhanced the minimum support price of wheat to Rs1,250 per 40 kg from Rs1,200 to encourage farmers to sell grain to the government instead of private traders. According to the millers, farmers insist selling grain to traders as they get the amount instantly while the government pays less than the official support price and takes time in clearing the amount to the growers.

Karachi Wholesalers Grocers Association (KWGA) chairman Anis Majeed ruled out any serious shortage of wheat in the wholesale market so far, but said, “Wheat supply from producing areas is definitely not frequent.” He added that costly wheat is arriving as wheat brokers are paying amount to the officials at the check posts.