September 23, 2004

Wheat Prices Climb In Pakistan
 

The price of wheat has shot up to Rs1,200 per 100 kg in the open market as Punjab keeps a ban in force on moving wheat outside the province in Pakistan. Millers are also reluctant to use the wheat imported from Russia even though they are getting its supplies.

"Wheat price has reached Rs1,195 - Rs1,200 per 100 kg," said Sheikh Akhtar Hussain, a former chairman of the All Pakistan Flour Mills Association. "This shows an increase of Rs30 per 100 kg in just three days."

Mr Hussain and other millers attribute the price hike to dwindling stocks of wheat in the open market in the absence of wheat supplies from Punjab. 

The millers also say that since the wheat imported from Russia contains a moisture content higher than what is acceptable here and is reddish in colour, the millers are not using it in due proportion in flour making. That in turn increases their requirement of domestic wheat, forcing them to buy larger quantities from the open market at a high rate.

Senior officials of the Sindh food department agree, but they have yet to increase the share of domestic wheat in the supplies being made to the millers.

"At present the ratio (for mixing domestic wheat with Russian wheat imported recently) is 50:50," said an official. "But we are going to change it very soon, maybe within days," he added.

All 70-plus flour mills which get subsidized wheat from the food department want that the ratio of mixing domestic wheat with Russian wheat be changed to 80:20. It is not clear if the department would accept this demand, but officials say they would certainly increase the share of domestic wheat.