|
Pakissan.com;
|
 |
|
News Channel |
|
Crop arrivals drive wheat prices down
By Imran Ayub
KARACHI (April 11 2007): Wheat and flour prices have declined in the open market for the first time in eight months, as fresh crop arrival and expected bumper production
have started giving some relief to consumers, traders said on Tuesday.
They said wheat price, which was available at Rs1,225 per 100 kilogram, has now declined to Rs1,135. The Sindh crop has started arriving in the local market while Punjab’s
produce is set to hit the market within a week.
Similarly a 80-kilogram bag of wheat flour is being sold at Rs1,090 compared to Rs1,120 a couple of days ago,” said Anis Majeed, Advisor to the Karachi Wholesaler
Grocers Association. “It’s basically a reflection of fresh crop entry into the market and the prices are expected to go further down as crop arrivals gather pace.”
He said prices of wheat and its byproducts declined within a couple of days after the federal ministry of food, agriculture and livestock announced it expected a bumper crop
yield from the just-ended Rabi season.
“Being traders we don’t oppose wheat export, as the excessive stocks of the crop must be shipped to keep the prices stable for better returns to growers and other
stakeholders,” said Majeed.
The MINFAL a few days back announced the farmers were bracing to harvest a bumper wheat crop during the Rabi season, as initial estimations put the yield at 22.5 million
tonnes.
The country, which consumes over 20 million tonnes of wheat domestically, expects its godowns to be bloated with excess stocks of more than 3.5 million tonnes.
Traders believe the prices of the crop and its byproducts should fall further in the days to come on increased supply and stable demand.
“Currently we have received fresh crop only from Sindh, as harvesting in Punjab starts a little later,” said Sardar Ahsan Khan, another wholesale trader. “As the Punjab crop
is more in quantity, formula of demand and supply suggests the prices should go further down but it depends on strict check from the authorities concerned.”
He said apart from quantity, wheat crop of Rabi season was also in demand due to better quality and could attract better price from the international market.
The Economic Coordination Committee of the cabinet in December 2006 allowed private traders to export 500,000 tonnes of wheat by April 2007 on hope of bumper crop this
season. Later, it extended the deadline to June 2007 with 800,000 tonnes wheat allowed to export.
However, the exporters have so far managed to make deals for 200,000 tonnes with interest being shown from Far Eastern, European and South American region.
“Exports never affect local prices,” said Majeed. “If supply remains smooth and farmers get better returns, the possibility of price hike in the local market amid a bumper crop
is out of question.”
He said the government should keep exports permissible but at the same time it was bound to keep the domestic supply normal without any hoarding by the millers and
growers.
“There is a potential for better wheat crop every year and if the strategy of the recently-ended Rabi season remains in place, there are strong chances of bumper crop in the
Kharif too,” he added.
The government has set wheat production target of 23 million tonnes for the upcoming Kharif season compared to last year’s 21.7 million tonnes. A recent meeting of the
Federal Committee on Agriculture (FCA) decided to export wheat over and above the domestic requirement of 20.5 million tonnes.
Courtesy The News |
|
|
|
|
apinbanner
|
|
|
