HYDERABAD (February 25 2004): The prices of wheat and wheat flour unprecedented increase throughout the Sindh province following the rejection of 75,000 tonnes of Australian imported wheat when it was found fungus ridden and short of protein and gluten percentage.

Following the rejection rumours started gaining currency the two ships carrying the remaining quantity of 0.150 million tonnes deal have been directed to take a U-turn as the wheat is below the specification.

These rumours further aggravated the situation and most of the mills and small grinding units whom have supplied their full quota for the week have terminated supply of flour to consumers.

According to reports reaching here from other parts of the province acute shortage of wheat flour has been felt and the prices have been skyrocketed.

The flour prices according to markets reports have been quoted at Rs 15 to Rs 16 per kg while the wheat bag of 100 kg at open market was quoted at Rs 1,100 to Rs 1,125.

The Sindh food department depending on arrival of new wheat as wheat harvest has started in some parts of Mirpurkhas district and expected to start in Sanghar and other district by first week of February.

The department to keep away the private sector mostly the grain traders and flour millers who were negotiating deal on cash payment at slightly higher prices than the state set price had cancelled their wheat trading licenses.

So that the government has the monopoly on wheat trade to bridge the gap between availability and supply.

Experts say that the wheat harvest will not get momentum till the end of March and during that period the price hike of staple food will continue unabated unless the department has supply of another 50,000 tons from Punjab on war footings.

They also maintained that the wheat crop might record a decline of around 11 percent as compare to last year on account of poor availability of water, late harvest of sugarcane, extension of cotton crop and poor availability of DAP which would make it difficult for the provincial food department to complete its procurement target.

Courtesy Business Recorder