ISLAMABAD: Punjab’s ban on supply of wheat to Khyber PakhtunKhwa (KPK) has created an ugly situation as both the provinces are trading blame game and holding each other responsible of spike in wheat flour (atta) prices, sources said
Last month, the Punjab government had imposed ban on supply of wheat to KPK on the pretext that KPK was not releasing its own stocks and rather depending on Punjab for release of stocks to its flour mills.
“We have noted that KPK government was not releasing its own stocks and rather depending on Punjab for release of quota to its flour mills and it was not fair. Punjab also need to keep its stocks at a reasonable level”, an official of Punjab Food Department on the condition of anonymity.
On the advice of the federal government, Punjab Food Department purchased 4.1 m tons, PASSCO 1.3 m tons and Sindh 1.2 m tons to take total procurement to 6.6 m tons for this year. Over and above, the consumption of 7.6 m tons, the country needs around 2 million tons extra wheat for a carryover stock for the next year. These calculations show that actual gap in demand and supply of wheat was over 2 m tons for the current wheat year.
Punjab is conscious of wheat releases this time. Its stocks position seems fragile due to comparatively less procurement during this year procurement season. The official statistics show Pakistan wheat consumption for the current wheat year (2020-21) ranges between 7.2 m tons to 7.6 m tons against total production of 6.6 m tons. The production and demand figures show a gap of 0. 9 m tons. Out of total available stocks, around 1.5 million tons stock was required in the market for carry over for next year’. Wheat year starts in March and ends in February. The officials use projections keep in view total production and estimated consumption from March every year to February next year.
Wheat flour prices have been showing upward trend right from the middle of wheat harvesting season. The price of a 20 kg bag of wheat flour has gone up to RS 1020 from Rs 860 in the last three months. Its spiral effect has pushed-up the prices of all edible considerably during the same period. The rise in wheat flour prices and that too right from the middle of harvesting season is a worry for Pakistan Tehrik Insaf (PTI) government. Since concern of rising wheat flour prices has been noticed at the highest level, prime minister, Imran Khan, himself had had series of meetings on the issue and issued orders take every possible step to stop upward trend in wheat flour prices. Among many other steps, he had ordered private to import wheat to ease pressure on existing available stocks. So for, none of these steps has yielded desired result for the government.
Taking to NEWSMAN, Pakistan Flour Mills Association (PFMA) former chairman, Mian Riaz, said this year wheat production was less by around 20 percent than the projected estimates. He argued that long rainy spells right in harvesting season damaged about 20 percent grain and that was a main cause of less production this year. He said the public sector should import around 2 million tons of wheat on war footing to off-set pressure on the market and stablise wheat flour prices.