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20kg flour bag price up by Rs8
LAHORE, April 27: The
Pakistan Flour Mills Association on Monday decided
to increase ex-mill rate of 20kg flour bag by Rs8
and retail price to Rs224. The association took
the decision following increase in market price of
wheat and the Punjab government curbs on purchases
from the open market.
The mills had been providing flour at Rs208 per
20kg when official release price was Rs350, which
is now Rs370 in the open market.
Ban defended: Defending its case of placing
inter-district ban on wheat movement, the Punjab
government on Monday said that its failure to
procure 3.5 million tons of wheat could exert
extreme pressure on food security and expose urban
population to fiscal manipulation of the private
sector.
A Punjab Food Department official said that the
induction of private sector in wheat trade had not
brought about desired results as another breed of
businessmen called 'investor' had jumped into the
fray.
"This new catalyst (of trade) has absolutely no
connection with the socio-economic situation of
the rural areas. Its chief motive is quick profits
which, in turn, give way to an artificial boom in
market price on the one hand and hoarding of wheat
for higher profits on the other.
It has turned the food business into a
monopolistic trade and triggered chaos in market
through the sheer size of their hoarding," he
said. Market sources said the official expectation
of a comfortable food market in leaner period
crashed when the government panicked into placing
orders for 1.5 million tons of wheat import when,
according to estimates of the State Bank, private
sector was still hoarding 300,000 tons of wheat.
During the whole crisis, the Punjab government not
only carried the blame of ineffectiveness and
price rise, but also met needs of other provinces.
Ultimate sufferer of this affair was urban
consumer of the Punjab who ended up buying flour
at 40pc higher price than the previous year's.
Precisely for this reason, if the Punjab Food
Department failed to procure 3.5 million tons of
wheat it would be impossible for it to maintain a
balance in the open market.
"This year also, despite reports of better crop by
all official agencies, the market took unexpected
turn. Aggressive buying by private sector took the
crop out of the province at a brisk pace,
enhancing fears of repeat of last year's
situation.
It was apprehended that the province would go dry
in by August if the situation was not retrieved
quickly. Liberal and low-interest loaning by the
banks only helped worsen the situation," another
Food official claimed.
The DAWN
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Pakissan.com; Advisory Point
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