Market movers have once again shocked the local market by increasing wheat prices by Rs 30 per 100-kilogram, touching all time high level peak of Rs 1,350 per 100-kilogram, traders said Monday. Following upsurge in wheat, the flour mills also raised the prices of flour by Rs 30 per 80-kilogram bag in the wholesale market.
"After the current rise in the flour prices, the prices of flour reached Rs 1,260 per 80-kilogram bag as compared to previous price of Rs 1,230 per 80-kilogram bag," said Chairman of Pakistan Flour Mills Association Ansar Jawed.
Despite, the government's claims of bumper wheat crop of 23.5 million tonnes this year, its prices are gradually increasing, frustrating the government's efforts to arrest the commodity's soaring prices, they added. They said the since demand of the commodity increased during the holy month of Ramazan, hence the market movers resorted to hike in the price.
On Monday, wheat prices went up by Rs 30 per 100-kilogram to a record level of Rs 1,350 per 100-kilogram as compared to Rs 1,320-1,325 per 100-kilogram in the local market, they added. Citing the reasons behind increase in the prices, they said to meet the growing demand wheat flour in Ramazan, the mills were buying the commodity at exorbitant rates.
Pakistan Flour Mills Association Chairman Ansar Jawed stressed upon the government to take immediate action and release the wheat stock. He said: "I m sure with release of wheat stock, the prices of the commodity will decline by Rs 50 per 100-kilogram in the local market."
Leading wheat trader Hashim Sharjahwala said: "Despite several announcements, the government has not yet released its procured wheat stock to control the rising prices of wheat in the local market." He said that some shortage of wheat had also been witnessed in the market during Monday trading and in the evening, the sellers were not available despite the huge demand.
It was expected that flour mills would increase their product prices from Tuesday due to costlier buying of wheat, he added. During this season, the prices of wheat increased by around Rs 300 per 100-kilogram bag to Rs 1360 per 100-kilogram bag in the domestic market.
He said that if the supply of wheat would not be sufficient and shortage would continue, then it might touch mark Rs 14,000-mark per tonne in the holy month of Ramazan. All measures, taken by the government, including ban on the wheat and its products' export via sea had been unsuccessful to arrest the commodity price hike, he said.