Wheat mafia 'uncontrolled' in Hyderabad as prices spike

Price of 100kg wheat bag rose by Rs700 over last five days

HYDERABAD:

Wheat prices in Hyderabad's open market have surged to new highs amid allegations of government inaction against the wheat mafia and hoarders, raising fears that flour prices will increase again across Sindh.

Over the last five days, the price of a 100-kg wheat bag has risen by Rs700. On Sunday, wheat was being sold at Rs11,800 per bag in Hyderabad's open market, up from Rs11,100 a week earlier.

With wheat rates climbing, traders say a further increase in retail flour prices is now likely. At present, flour is selling at Rs44 per kg in most areas of the city.

According to market sources, the Sindh Food Department has failed to meet its wheat procurement target for this year, while the Sindh government and the department have left the wheat mafia and hoarders unchecked to exploit the public. As a result, the mafia is selling wheat at self-determined rates in the open market, and the cost is being passed on to consumers in the form of expensive flour.

Traders claim that influential wheat mafia groups, along with investors linked to the trade, are stockpiling wheat on a large scale in various warehouses across Hyderabad and adjoining districts.

Officials are reportedly aware of these stocks, but no action is taken due to the mafia's alleged official patronage. Market insiders also said Hyderabad's open market sets the tone for wheat prices in the province. When wheat becomes expensive here first, Karachi sees a hike, followed by other cities in Sindh.

The Hyderabad Flour Mills Owners Welfare Association said that three months ago, when the new wheat crop arrived in Sindh, a 100-kg bag was priced at Rs7,800. But due to hoarding and the Food Department's failure to buy wheat, the price has gone up by Rs4,000 per bag in just three months.

Association General Secretary Haji Najamuddin Chohan said the association has been writing to the prime minister and the Sindh chief minister for a long time, urging wheat imports to avoid a possible crisis.

He said they have been highlighting the emerging situation and requesting the government to import wheat to prevent it, but there has been no response from either government, which is further emboldening the mafia.

Chohan claimed that the Food Department Sindh is facing serious difficulties in achieving the government's 1 million metric ton wheat procurement target.

According to the association, Hyderabad's three major warehouses - Sasso Godown at Hala Naka Bypass, Pasco Godown at SITE, and Qasim Road Godown - have capacity to store 500,000 to 600,000 bags. But currently, only 1,800 to 2,000 government-procured bags are present in these warehouses, which he said shows that the mafia bought wheat cheaply from farmers and hid it.

A flour mill owner, requesting anonymity, explained why retail flour prices do not rise immediately after wheat becomes expensive. He said every mill owner has wheat stock for a few days of milling.