Korangi Association of Trade and Industry (Kati), Vice Chairman and senior member of Pakistan Flour Mills Association (PFMA), Syed Johar Ali Qandhari has urged upon the government not to stop wheat movement from upcountry to Karachi if it likes to keep Atta prices at Rs 20 to 23 per kg.
Taking to Business Recorder, he said that at present there is a difference of about one million tons in consumption and production of wheat in the country. Qandhari said that every year the country consumes around 22 million tons of wheat whereas its production is expected to be around 21 million tons this year.
Out of total production, he said around 20 percent of wheat goes wasted due to lack of proper road network and poor fumigation facilities. Besides, around 2.5 million tons of wheat is smuggled to Afghanistan and other countries in the vicinity.
He demanded that the ban imposed on wheat movement from upcountry to Karachi be lifted so that fresh stock of wheat could be acquired. Both flourmills and government warehouses have already been dried of wheat stock, he added. Referring to export of wheat, he said that wheat export figures quoted at government level are incorrect. Factual position is that only 0.3 or 0.35 million tons of wheat was exported, he claimed.
Qandhari said that the government is importing around 1.6 million tons of wheat and giving subsidy of around $400 million. He said that in international market wheat prices are around Rs 1,500 to Rs 1,600 per 40-kg.
While in Pakistan the government is paying around Rs 625 per 40-kg to growers. Whereas the growers are demanding wheat price at Rs 800 to Rs 900 per ton, he added. He said that during last one year, prices of petroleum products, power tariff, gas, fertiliser, seeds etc have gone up by around 300 percent, which has created problems for growers.
Replying to a question, he dispelled the impression that flourmills owners are hoarding wheat and said that in present circumstances businessmen cannot afford blocking their finances. Besides, the government has also deployed rangers and posted other government officials to keep an eye on wheat flour movement.