Sindh struggles to stabilise wheat prices

Cabinet will reportedly approve provision of wheat stock to flour mills on quota basis

KARACHI: The Sindh government has reportedly failed to control the prices of wheat. The crop which is sold for Rs35 per kilogramme is now being sold at higher than Rs50 per kg due to the monopoly of some hoarders. The letters issued by the secretary of the food department to all divisional commissioners directing the launch of an operation against all hoarders have come to no avail. Due to administrative incompetence, no action has been taken against such elements in Sindh. The provincial government could not stabilise the prices of wheat despite Sindh having more than 800,000 tonnes of wheat in stock.

On Wednesday, however, the Sindh Cabinet will give approval for wheat stock to be provided to flour mills on a quota basis in efforts to stabilise wheat prices.

Speaking to The Express Tribune, Sindh Food Secretary Laeeq Ahmed, maintained that there was no crisis of wheat in the province. According to Ahmed, 99,077 tonnes of wheat is available in Mirpurkhas, 52,192 tonnes in Hyderabad, 102,500 tonnes in Karachi, 309,000 tonnes in Sukkur, 175,000 in Larkana and 90,000 tonnes in Shaheed Benazirabad.

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Ahmed said that wheat would be provided to flour mills after approval by the Sindh Cabinet. He added that it has been suggested that the flour mills engaged in plea bargains with the National Accountability Bureau (NAB) or those which are defaulters are not to be provided with the designated quota. The strategy forward would be planned after approval by the Cabinet, he said.

In response to a question, Ahmed said that wheat crops were damaged due to heavy rain in Sindh and 300,000 tonnes of Sindh's wheat was shifted to Punjab. It is now present in Rahim Yar Khan, said the food secretary, adding that inland transfer of wheat could not be restricted which is why traders transferred the wheat to Punjab after purchasing it from Sindh's open markets.

The food secretary maintained that Sindh had ample wheat stock available and the federal government has agreed to provide 100,000 tonnes of wheat as well. Besides, further 300,000 tonnes of wheat could be acquired from Pakistan Agricultural Storage and Services Corporation (PASCO) if a wheat shortage arose in Sindh.

In response to another question, Ahmed said that letters have already been issued to all commissioners to take action against the hoarding of wheat but some elements have increased wheat rates by creating the illusion of wheat shortage in the province. However, he said, the rates will be stabilised once the wheat quota is released after the cabinet's approval.

Published in The Express Tribune, October 23^rd, 2019.