July 5, 2004

Pakistan No plan To Lift Wheat Ban

Pakistan's Punjab government has no immediate plan to lift the inter-district wheat transport ban, sources told Daily Times on Saturday.

"No relaxation will be given till September 30," the sources said, but added that the Food Department was considering lifting the ban for those who agree to give up 50 percent of the wheat they have hoarded.

"The department got the idea after watching wheat prices go down in Sindh when their government lifted the ban," the sources said. "However, any relaxation even if decided will be given after September 30, because by then hoarders will want to empty their stores to make room for cotton bales that will start arriving in September. And such hoarders will need around a month to fulfil their cotton stock requirements, so they will be desperate to sell the wheat."

Meanwhile, 0.5 million tonnes of imported wheat will also arrive in September. "After the arrival of imported wheat, the ban will be of no use," the sources said.