Factor identified for wheat price-hike

A huge difference between the price at which the government agencies buy wheat from growers and sell it to flour mills is mainly instrumental in pushing wheat prices upward, it is observed. The revised procurement price of wheat at Rs 625 per 40-kg has, on one hand, made the wheat growers hopeful about earning more than their cost of production and on the other the consumers are buying wheat and flour on higher prices.
The government is issuing wheat to the flourmills at Rs 465 per 40-kg while the revised procurement price of wheat is Rs 625 per 40-kg. Moreover, after April 15, the government will not provide any wheat quota to the flourmills of Punjab because of the arrival of new crop in the domestic market. "After the arrival of the new crop in Punjab, the wheat will be provided to the flourmilles at high rates because of increased procurement price", sources told Business Recorder.
"Keeping this in view, the flour millers have started hoarding of wheat that is creating severe shortage in the domestic market", sources said. A flour miller, requesting anonymity, told this scribe that the government of Punjab is bearing burden of Rs 8 million per day as subsidy to make sure the sale of the commodity to flour millers at Rs 465 per 40-kg but the flour millers, puppets in the hands of wheat hoarding mafia, are making misuse of it.
A flour miller of NWFP said that the Punjab Food Department is claiming that it has not restricted the movement of wheat and flour from Punjab to NWFP. The NWFP Food Department is purchasing wheat from the private sector of Punjab is a false statement as it has deployed Rangers at all check-posts for this purpose.
Even after the purchase of the commodity from the private sector, the NWFP Food Department is not allowed to bring it to the province without paying bribe at the check-posts so, the Punjab flourmillers are getting benefit of the situation and smuggling wheat to NWFP.
NWFP and Balochistan have been neglected by the government for the last 60 years. The wheat prices in NWFP and Balochistan are increasing by each passing day reason being the wheat quota being released to the flourmills is less than their requirements.