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Low prices of wheat in the local market have led to smuggling, hoarding and illegal export of the crop to neighbouring countries which created artificial shortage all across the country, an official in the Ministry of Food, Agriculture and Livestock (Minfal) said.
"The prices of wheat in Pakistan markets are cheapest, as compared to the world market, tempting the smugglers to export it to other countries for getting maximum monetory benefits," Joint Secretary, Food (JSF), Seerat Asghar, told APP here on Monday.
Wheat has been exported mainly to India and Afghanistan, he remarked, adding that high prices of wheat in neighbouring countries was the main reason of wheat flow towards these countries. Price of wheat is double in India, which is an attractive market for wheat smugglers to earn more than double the domestic market offers them. He said that recent decision by the government to import one million tons wheat would help reduce the artificial shortage created due to hoarding.
He said, "Hoarders have been stockpiling the grain to create artificial shortage in the market, and sell the wheat at highest possible prices." The federal government had taken serious note of the reported shortage and high prices of flour in various parts of the country, despite abundant wheat stocks following the bumper crop this year, he added.
The provincial governments of Sindh and Punjab have been directed to streamline wheat supply to flour mills to ensure reasonable flour prices in market. He said that the government had also directed the departments concerned to implement the ban on wheat export and check smuggling by sea and land, and added that the Interior Ministry would monitor the progress in this regard.
Besides, the provincial food departments have been asked to make liberal wheat quota releases to flour mills, he added. He said that provincial governments have been providing 18,000 tons wheat to the flour mills at Rs 465 per 40 kg, and added that Passco was also directed to provide 50,000 tons wheat to USC to provide flour at cheaper rates during Ramazan.

Copyright Associated Press of Pakistan, 2007

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