Flour costs are improving in synchrony with improving the cost of regionally produced wheat, which has also weakened government’s plan to trade excess shares as the commodity’s price is dropping on the world market.
The cost of regionally produced wheat in US$ is around $340 per tonne in the start industry in comparison to $185-190 a tonne on the global industry. Worldwide costs began creeping down from $220 a tonne in Dec 2014 to $180-185 now. The 100kg rice bag cost has increased to Rs. 3,425-3,500 from Rs. 3,400 two times back, while it was available at Rs. 3,150-3,200 in general industry by the third a week of Sept. One kg of rice expenses Rs. 34-35 in the regional industry in comparison to Rs. 18 in the global industry.
To prevent any problems, the provincial Govt on Friday allegedly set 100kg rice bag costs for the millers Rs. 3,270 for a plastic bag and Rs. 3,340 for a jute bag. After ongoing demand from flour millers, the government kept on increasing the date of excess wheat for trade reasons. The Economic Synchronization Panel further prolonged the period until September 30, 2015, but the decision could not bring significant foreign exchange.
Millers and exporters kept on having difficulties to trade more wheat, but their initiatives shown useless because of frustrated world costs. The ECC on Jan 20 this year permitted a complete of 1.2m loads of wheat trade to clear excess household shares coming up out of fender plants.
The Punjab Govt was permitted to trade of 800,000 loads at a transportation refund of $54 a tonne while Sindh Govt was given the process of 400,000 loads at the refund of $45 per tonne. According to the Pakistan Institute of Research, only 445 loads of wheat were released during July-August this season getting just $108,000. The country’s wheat exports delved to 10,441 loads ($3m) in 2014-15 from 20,037 loads ($7m) in the previous financial year.