Wheat grain prices reach Rs 3,200 per 100-kg bag

The prices of wheat grain continue to move upward and reached Rs 3,200 per 100-kilograms bag in the domestic market due to buying by the market movers and hoarders. Market sources told Business Recorder on Wednesday that despite inter district ban on the movement of wheat by Sindh government to complete its procurement, the prices of the commodity are increasing for last three weeks.
Wheat harvesting in Sindh has already begun and presently the government is engaged in procuring 1.3 million tons wheat as strategic reserves. Generally, wheat prices showed declining trend during the harvesting season, however this year prices of wheat grains are gradually raising and now reached Rs 3,200 per 100-kilograms bag in the domestic market.
The prices of the commodity witnessed an increase of Rs 350 per 100-kg bag during last three weeks as the prices of the essential commodity stood at Rs 2,850 per 100-kg bag in the third week of April this year. Traders said that unplanned procurement policy and mismanagement by the government has resulted in some increase in the wheat prices. However, they said, current raise in the prices of commodity is unexpected. Massive increase in the prices of wheat at time of harvesting is anticipating a serious crisis in the country, they added.
"Hoarders and market movers are procuring a large quantity of wheat as they are expecting that the production will be less than target," traders said. With tight monitoring of wheat movement and strict implement of Section 144, already announced for inter district ban on movement of wheat, Sindh government can bring the prices down within next one week, they suggested.
"There is no wheat shortage in the country and it is a wrong perception that wheat is being procured in large quantity for export purposes," exporters said. They said sponsored traders are buying cheap wheat from farmers and selling at the support price to Sindh government, while flour millers are also making extra procurement and offloading this quantity to Sindh food department.
Punjab government procurement policy is very clear and much better than Sindh as Punjab government encourage direct buying from small farmers. The previous Punjab government has already restricted that each delivery will be maximum of 200 bags or 20 metric tons, which basically discouraged feudals/big farmers/traders to sell wheat to government procurement agencies. This has resulted in a direct benefit to farmers and while doing this the Punjab Food Department ensured maximum participation by the private sector including exporters, which meant more selling options for the farmer, exporters said.