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Wheat price surges due to Sindh ban on Punjab
 admin May 3, 2010, 06:16:32 AM 

KARACHI (May 18 2009): Wheat price has reached current season\'s peak level of Rs 25,500 per ton, up by Rs 1,750 per ton due to a ban on inter-province wheat transportation, market sources said. They said that Sindh food department has imposed a ban on arrival of wheat from other provinces, particularly from Punjab, with the aim to protect local farmers.

"The Sindh government believes that if Punjab\'s wheat is allowed in Sindh at the time of harvesting and procurement, the local farmers would not get 100 percent support prices," they said. Punjab has surplus wheat crop and wants to supply to Sindh and other provinces.

Sources said that Nadir Khan Magsi, Sindh food minister, has said that arrival of surplus wheat from Punjab would reduce the price of the commodity in Sindh, and the farmers would face difficulty to get Rs 950 per maund support price announced by the federal government. Therefore, he had imposed a ban on arrival of wheat from Punjab till the successful achievement of wheat procurement target of 1.2 million tons.

The Sindh government\'s move has also put a negative impact on the domestic market and an essential commodity has become costlier, despite a bumper crop of 24-25 million tons this year. Market sources said that the price of wheat has increase by Rs 1,750 per ton to current season\'s peak level of Rs 25,500 per tonne during one week.

"After current raise, flour mills were procuring wheat at Rs 2,525-2,550 per 100 kg bag on Saturday, which previously was being procured at Rs 2,375," said Juhar Ali Qandhari, regional chairman, Pakistan Flour Mills Association, adding that "this is the peak level of wheat price in current season". He said that Sindh government has procured over 1.1 million tons wheat during the current season and now food department is facing some financial problems due to which the procurement is on slow track.

"Sindh food department has already procured highest quantity of wheat. Therefore, we believed that now it is the right time to remove the ban on import of wheat from Punjab," Qandhari said. He said that wheat and flour prices would further increase if the government immediately would not allow wheat transportation from Punjab. "Although wheat is available in large quantities in Sindh, available wheat quality is not very good. As a result, flour mills are avoiding to procure Sindh wheat at high prices and want to blend it with Punjab wheat, which has better quality," he added.

He said that it was surprising that the government has imposed a ban on arrival of wheat, while at the same time transportation of wheat flour and fine flour (maida) has been allowed from Punjab. "We want immediate removal of the ban on wheat from Punjab to reduce the commodity price," he said.

Meanwhile, due to the rising prices of wheat, atta prices have also gone up by Rs 1.50-2 per kg during last week. "With an increase of Rs 2, Chakki wheat flour price has reached Rs 29-30 per kg from Rs 27-28 per kg in retail market," said Qeaser Shahzad, a shopkeeper. He said that flour mills have also increased the prices of fine wheat flour, which is now available at Rs 33-34 per kg in the retail market, and previously was being sold at Rs 31-32 per kg. "We are expecting some more increase in the current week as mills are supplying limited wheat flour to the retailers," he added

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