KARACHI (February 25 2004): Flour prices (atta No. 2.5 chakki) have further risen by Rs50 per 80 kg bag on Tuesday to Rs1,125 from Rs1,075 on Monday owing to looming crisis of wheat in Sindh followed by government's rejection of two cargoes of Australian wheat of around 80,000 tons as it was contaminated by the Karnal bunt fungus.

The flour was selling at Rs975 for 80 kg bag when the City government and millers put their heads down on February 18 to find out solution to the wheat crisis control skyrocketing prices of flour.

The government's rejection of Australian wheat has made an immediate impact on flour prices, which reached to Rs1,075 on Monday, thus making a total increase of Rs150 on 80 kg bag in the last six days.

The 100 kg bag of wheat is now tagged at Rs1,200 as compared to Rs1,120-1,130 on February 1. As the Sindh government has sought federal government's help in providing 50,000 tons wheat to the province, retailers and wholesalers said that the flour rates may remain under pressure until the federal government releases the stock.

Meanwhile, the Sindh government plan to sell flour at bachat bazar has fizzled out as Pakistan Flour Mills Association (PFMA) refused to provide flour at reduced rates.

The Sindh government had in collaboration with the City Government and PFMA planned to sell atta at Rs11.50 per kg at 120 bachat bazars and at 53 special stalls.

Market sources said that the sale of flour at bachat bazars could not pick pace because of supply problems as the millers were demanding quota from the food department.

Meanwhile, PFMA Vice Chairman, Naeem Ahmed Khan Malik defended the mediocre supplies of flour at Bachat Bazars, saying that flour was available at Rs11 per kg in almost all the 120 bazars.

However, the general body on Monday dropped the plan to sell flour at 53 special points. "When wheat is available at Rs12 per kg in open market then it is impossible to sell at Rs11 per kg to the consumers," he said.

The rejection of Australian wheat of 80,000 tons on Sunday coupled with thin balance of wheat available at the mills had forced the millers to suspend the plan to sell flour at 53 special points in the city. As a result, millers decided to concentrate on Bachat Bazars by increasing the quantity of flour.

Malik said that the new crop of Sindh would come into full swing from first week of March while some quantities would start arriving from March 1 but it will take at least month to dry up.

He said the Food Department has got only 2,500-3,000 tons of wheat from the 2003 crop besides 500-700 tons that arrived from Larkana while 6,000-6,500 tons are in transit from Larkana.

In February, each miller in Karachi had received an average of 200 tons of wheat from the Food Department. A total of 60 mills had been functioning properly out of 75 mills in the city.

The chairman, Karachi Wholesalers Grocers Association (KWGA), Anis Majeed was of the view that wheat crisis would become over as the new Sindh crop is arriving in 15-20 days. He said some millers, who had stocks in their hands, are selling the product at their own prices.

GINGER: Ginger prices have touched new peaks of Rs80-96 per kg from Rs40 per kg prevailing in the first week of this month. At the New Sabzi Mandi, its wholesale price ranged between Rs65-70 per kg as compared to Rs22-24 per kg.

President Falahi Anjuman Wholesale Vegetable Market, Haji Shahjehan said that ginger arrivals, mainly from China, has slowed down in recent weeks due to price flare up, causing massive increase in its rates at domestic markets.

The landed cost of Chinese ginger has touched to $500 per tons as compared to $250 per ton a month back, he added.

DAWN