Wheat procurement price up at Rs 1170 per 100 kg

Wheat procurement price in Sindh has been raised by Rs 120 to Rs 1,170 per 100 kg, as the growers believe that the government will continue its export policy next year as well, traders said. "This year, the new wheat crop trading price has crossed Rs 1,100 per 100 kg and has touched Rs 1,170, rising by Rs 120 per 100 kg bag," said Hashim Sharjahwala, a leading wheat trader here.
He said that last year fresh wheat crop was traded at average rate of Rs 1,050 per 100 kg, but this year its rate has reached Rs 1,160 to Rs 1,170 due to rain and late harvesting. New wheat has arrived in the market, as wheat harvesting has started in the different part of Sindh including Mirpur Khas, Dadu and Jhudo, but rain and expected interference by exporters have taken wheat prices to new peak.
Hasim said that growers have raised new wheat crop price by Rs 40 per maund (40 kg) and they are demanding Rs 440 per maund for wheat. "We are buying new wheat from growers at Rs 440 per maund (40 kg), against Rs 400 per maund of last year" he added.
He said that there were many reasons for rise in the prices of new wheat, and the main reason was last week's rain, which had delayed wheat harvesting in the different parts of the province. Expected intervention by exporters was another major reason of wheat price raise by growers, he added.
"This is good for growers, because if the rate sustains it is possible that government would not intervene to protect the growers' interests," he said. He said that it was also expected that if the wheat harvesting activity increased in near future then the prices of wheat would come down to Rs 1,100 per 100 kg bag.
On the other hand, some other traders said that the main reason of wheat price rise was permission by the government to export wheat, and the growers were expecting that the government would continue its wheat export policy next year as well. As a result, exporters would appear in the market to procure wheat for export. They said that exporters were also monitoring the situation, but due to the new wheat being wet they were avoiding the market.