Rs 325 rise in wheat support price termed windfall for hoarders

The extraordinary increase of Rs 325 in support price of wheat is a lucrative incentive for the hoarders to maximise their profit, sources told Business Recorder here on Monday. They said that after the announcement of support price of wheat at Rs 950 per 40-kg, the hoarders are not ready to release wheat stock to earn the handsome profit in the days to come.
The country seems to be facing wheat and flour shortage even after the import of 1.2 million tons of wheat. The government has sufficient stock of wheat, which would be enough till April 2009 while new crop will arrive in local market from May 2009.
"There is almost 40,000 to 50,000 tons stock of flour is available with the private sector, including shopkeepers but after the announcement of support price of wheat at Rs 950 for the next crop, the hoarders have started retaining this stock while keeping in mind that they can earn huge profits after the arrival of new crop in the domestic market", sources added.
On the other hand, the government of Punjab has announced to distribute 62,000 bags of 20-kg flour bags among the registered tandoor-owners to make them sell 'roti' at Rs 2 but they are reluctant to sell 'roti' at Rs 2 while lamenting that it was beyond their cost of production.
The tandoor-owners in the twin cities especially in Punjab have called on strike while demanding of the government that the 20-kg flour bag which is being provided at Rs 250 should be provided to them absolutely free of cost to meet the roti price at Rs 2. "We have to pay the gas, electricity bills and rent as well. So, we can not afford to sell 'roti' at Rs 2 ", Ashraf Qureshi, vice-president, Nan-bai Association told this scribe.
Being an agro-based economy; the government has failed to ensure the availability of flour to poor people that have to purchase just one-kg flour at Rs 29. "What is the fate of this country and its poor people who can not manage to make their both ends meet", Naseem Khan, a resident of Rawalpindi told this scribe.
He said with tears in his eyes, "We are helpless. Imagine! Our children are crying with hunger while our government officials are enjoying their foreign trips. Rapidly increasing inflation has deprived of our kids, basic necessities of life."
A flourmill owner on the condition of anonymity told this scribe: "We have filed a writ against inter-provincial movement of wheat in the Lahore High Court and the hearing of the case will start on October 10", sources said.