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Flour crisis looms large amid strike by millers - 70 units stop grinding         

KARACHI, April 27: Leaders of the Pakistan Flour Mills Association claimed that wheat grinding operation was suspended by 70 mills in the city on Monday in response to its strike call. However, some flour millers and traders said that at least 18 units did not observe the strike.

Sheikh Akhtar, a former leader of the Association's Sindh chapter, said that a meeting of the millers was held a meeting in the office of the association on Monday afternoon and decided to continue the strike on Tuesday.

The strike call has been given in protest against the Sindh Food Department's move to suspend licence of eight flour mills on the charge of over-charging. The millers are also angry at the Sindh government which, they say, was not allowing them to purchase wheat directly from farmers in the interior of the province. They accuse the government of creating hurdles in transporting wheat to Karachi.

Two of the non-striking millers said that they neither closed down their business on Monday and not would they do so on Tuesday. They claimed that they and 16 other mills would not be joining the strike.

The association leaders alleged that Food Department officials were harassing its members, and cited the example of Lyallpur Flour Mills where certain officials had a tiff with the mill's employees. Police from Azizabad police station had to be called to maintain peace.

Sindh Food Department officials said that they had held a meeting on Friday with millers of Karachi and decided to allow them wheat purchase and transportation from the interior on permits, provided the mills agreed on the monitoring of the process.

Wholesale prices of wheat in Jodia Bazaar on Monday remained unchanged at Rs950 for an 80-kg bag which means that per kilogram price of wheat was Rs11.87 in wholesale market.

Mohammad Shakeel, Secretary of the Karachi Wholesalers Group, said that not many transactions of wheat trade were witnessed in the market. "April is normally a dull month for wheat trading," he observed, and pointed out that usually there was not much demand for wheat in retail markets during second half of any month.

Anees Majeed, Chairman of the Karachi Wholesalers Group, warned that if millers' strike continued for the next few days, there could be a crisis of flour in the city.

"We have reports, though not confirmed as yet, that a few traders are negotiating wheat export orders... this is creating confusion in the market," he said, and added that a harvest of 20 million tonnes surplus was enough for the country's requirement provided government could plug smuggling through porous borders with Afghanistan.

But there is still a lot of confusion on wheat trade. There has been no word on the meeting, held on Monday in Islamabad, of the high-level Wheat Disposal Committee. Since no official announcement was made till late Monday, it is believed that the meeting did not take any decision about the restriction on wheat movement in Punjab and Sindh.

Leaders of the flour association quoted an official as saying that a top government official was about to intervene in the wheat affairs and that a meeting at highest level might be called later this week.


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