|
Main Page
|
 |
|
News Channel |
|
Wheat hoarding emerges as lucrative trade
LAHORE, April 16: The
hoarding of wheat has emerged as a lucrative
business for jobbers who earned around 30 per cent
profits after retiring all their debt and
operational liabilities, banking industry sources
confided to The News on Thursday.
In eastern and central Punjab, investment in
seasonal crops like wheat, rice, and cottonseed
cake is considered most lucrative for the
non-registered sector, which ensures good returns.
However, following the entry of financial
institution as per the direction of the State Bank
of Pakistan (SBP), this has become even more
attractive and risk free.
Under the directions of the SBP, liquidity
pregnant commercial institutions are offering
commodity financing at 3.75 per cent to the
private parties intending buying and subsequently
hoarding commodity.
Earlier, activity was limited to these commodity
and usually it was financed through the
non-traditional source of financing.
However, the entry of the commercial banks in the
sector has changed the arena while multiplying the
gains of jobbers.
According to last year’s crop’s figures, commodity
(wheat) was procured by private sector at Rs290 to
Rs320 per 40 Kg while support price was Rs300.
However, wheat procured and hoarded through this
process was sold at more than Rs380 to Rs410 per
40 Kg, thus helping these hoarders to save more
than 30 per cent of profit.
After retiring all the debt liabilities to the
creditor financing institutions, these private
companies - majority of whom were flour millers or
their suppliers were able to book pure profits
around 30 per cent.
Currently, non of the banking industry instrument
is offering such a huge return which these
commodities are offering but ironically, surge in
commodity prices is not supporting the agriculture
sector at all and profiteering is going in the
pockets of traditional profit mongers.
The News |
|
|
|
|
Pakissan.com; Advisory Point
|
|
