Ban on wheat movement in Sindh opposed

Flour millers demand withdrawal of decision, threatens country-wide strike.

KARACHI:

The Sindh government’s ban on inter-district movement of wheat and flour has been met with criticism, as the Pakistan Flour Mills Association (PFMA) has termed it unconstitutional and threatened a country-wide strike if the decision is not withdrawn.

Speaking to The Express Tribune on Monday, PFMA Chairman Asim Raza said, “The provincial government is creating problems because the ban will cause flour shortage in Karachi due to a wide gap between demand and supply, and also create problems for the government.”

The government on Sunday banned inter-district movement of wheat and flour in Sindh, particularly in adjacent districts of Karachi and districts on the Sindh-Punjab border.

A Sindh government official informed that the ban on wheat and flour movement has been placed to procure wheat at right prices from all districts and give growers a fair return for their produce.

Raza said that the government had wheat stocks of 3.2 million tons, which were enough to carry forward next year, adding that the ban was illogical.

It seems that the government wants to procure wheat at Rs800 per maund (40kg), instead of the present Rs950 per maund, as growers would sell their crops at lower rates owing to low demand.

PFMA Sindh Circle Chairman Mian Mehmoodul Hasan claimed that flour prices have dropped from Rs1,650 per 50 kg to Rs1,425 in one month, owing to better availability of wheat. The drop in prices is at least Rs4 per kg.

“The downward trend in flour prices will stop with the ban on movement of the commodity,” he said.

Replying to a question, he said PFMA was not against wheat export, but explained that the inter-district ban in Sindh was unacceptable. “There must be free trade in the whole country,” he asserted.

Hasan added that the association had discussed the matter with food department officials and is likely to continue doing so till the government removes the ban. He explained that the ban would only hit growers and consumers in Sindh.

Sindh Chief Minister Syed Qaim Ali Shah said that the federal government had set a target of 1.3 million tons for procurement of wheat in Sindh during the current year.

Speaking to a meeting held to discuss procurement of wheat in Sindh, he said the government would ensure that wheat is procured on fixed rates from growers in all districts. Despite the declining wheat prices in Sindh owing to the better wheat crop, growers will get their due return, added Shah.

Published in The Express Tribune, April 12^th,  2011.