Market movers on Tuesday once again increased wheat grain prices by Rs 500 per tonne to all time high rate of Rs 12,550 per tonne by creating shortage in the market, sources said. Flour millers have also announced one rupee raise per kilogram in wheat flour price from Wednesday due to increase in prices of the wheat grain in the local market.
Justifying the raise in wheat prices, they said it was heavy monsoon rains, which had badly affected the grain supply mainly from interior Sinddh during the last two weeks. Taking advantage of the rising demand by the flourmills, the market movers increased wheat grain prices by four percent or Rs 500 per tonne in the domestic market, they added.
After this upsurge, the wheat prices reached all time high level of Rs 12,550 per tonne during the current season. Earlier on Saturday, it was tagged at Rs 12,050 per tonne, said the sources. "We were buying wheat grain at Rs 1,205 per 100-kilogram bag which now stands at Rs 1,255 per 100-kilogram bag," said a flour miller. He, however, indicated that wheat grain prices would further go up in the next few days.
Despite the government's claims of a record bumper crop during the current year, which stood at over 23 million tonne as against the consumption of 21 million tonne, the wheat prices are on the rise in the local market.
"In the last week of April, when harvesting of was started, wheat prices stood at Rs 10,625 per tonne in the local market as compared to Rs 12,550 per tonne presently available in the local market," said Hashim Sharjahwala, a leading trader of the commodity.
He said that during the last two weeks, wheat grain prices have been increased by Rs 850 per tonne to Rs 12,550 per tonne against Rs 11,700 per tonne in the second week of June. He said that some traders were quoting Rs 12,600 per tonne price for August delivery, adding: "If the government did not take action, its prices are feared to go further up in the near future."
All measures, taken by the Federal government for the reduction in wheat grain remained unsuccessful. Despite the ban on wheat export, its prices are constantly going up in the domestic market. The Federal government had given green signal to exporters by lifting two-year ban on wheat export last December, but in May the government suspended wheat export.
Last week, the government formally announced ban on the wheat export, aimed at arresting its soaring prices in the local market. In spite of the wheat export suspension, exporters and traders have not floated wheat stocks in the market, which spurred its prices, Hashim said.
He stressed the need for a prompt action to cut the wheat grain prices in addition to control its hoarding by the millers and exporters, who had not yet floated stocks in the market, he added. Moreover, the millers have announced to sell the wheat flour (2.5 number Ata) at Rs 16 per kilogram, presently being available at Rs 15 per kilogram in the retail market.
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