Two-month ban on wheat export sought: 'Extraordinary' buying by exporters, others causing panic: PFMA

Pakistan Flour Mills Association (PFMA) has requested President Asif Ali Zardari to ban wheat export for two months aimed at reducing the commodity price in the domestic market. A formal request has been sent by chairman PFMA Chaudhry Ansar Jawed to President Asif Ali Zardari for minimum two months ban on wheat export. According to his letter, generally wheat prices decline in the domestic market after arrival of new crop, however this year wheat price in on the rise in the local market.
"In spite a better wheat crop during current season, price of commodity is gradually moving upward due to huge buying by exporters and hoarders to gain more profit on an essential item," Ansar said in the letter. He said that extraordinary buying by the exporters, market movers and hoarders was creating panic in the market, resulting in costly wheat grains. "We feel if this trend goes unchecked, the price of wheat grains will increase further in coming days and thereby general masses will directly bear the impact of higher wheat flour prices in the domestic market," he added.
PFMA very humbly request to take measure so that a ban should be imposed on wheat export for a minimum two months until a true market picture emerge and production estimate may be confirmed, he said. Exporters and hoarders should also be restrained from buying the commodity, so that prices come down, he added. Ansar said that provinces and PASSCO has already initiated their wheat procurement campaign and they will also face difficulties, if a temporary ban on wheat export was not imposed.
"It is father request to issue instructions in a proper manner so that operation of flour mills should not jeopardize, because they are catering the wheat flour needs of masses," the letter said. It may be mentioned here that wheat grain price is on the rise in the domestic market for the last two weeks and now it has reached Rs 3100 per 100-kilogram bag in the domestic market, despite that fact that new crop has already arrived in the market.
Sindh food department is also facing some difficulties in procurement of wheat. It has set a target of 1.3 million tons for wheat procurement, however so far it has procured 0.55 million tons wheat during last three weeks. Market sources said that massive buying by the exporters and market movers is main reason of current hike in the wheat prices, which can be reduced with some positive steps like temporary ban on wheat export.