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PFMA for lifting of ban on wheat movement
KARACHI, April 23:
Pakistan Flour Mills Association (PFMA) (Sindh
Circle) has urged the government to lift the ban
on the movement of wheat towards Karachi,
threatening that failing to do so would force the
association to increase ‘atta’ prices by Rs40 per
80kg bag.
In a press conference at the Karachi Press Club,
on Thursday, Malik Naeem, Provincial Vice Chairman
of the Association said that Karachi, with a
population of 14 million, needs about 125,000 to
150,000 tonnes of wheat per month. However, the
food department has not issued a single tonne of
wheat during the month of April.
Arif Jumani, Member Executive Committee, Khalid
Massaud and other office bearers were also present
on the occasion.
Naeem explained that the flour mills of Karachi
were receiving wheat from two sources - the Sindh
Food Department and the open market.
During the period, 2000 to September 2003, wheat
was abundantly available in the open market at
rates compatible with the Government Issue rate.
During the period, October 2003 to March 2004,
Karachi’s flour mills obtained wheat supplies from
both, the government and private traders, Naeem
said.
He claimed that millers were supplied wheat at
nearly 50 per cent less than the monthly
allocation.
Further, they received 40 to 80 per cent damaged
and old crop from the government godowns during
this period.
He said that in October 2003, when wheat from
private sources was available at Rs900 per 100kg
bag, flour was being sold at Rs10.50/kg, ex-mill
price. Afterwards, when the price of 100kg wheat
reached Rs1,225 in March 2004, millers had to sell
atta at Rs13.50/kg, ex-mill price.
During the first ten days of April, wheat was
available at Rs950 per 100kg bag. Accordingly,
flour prices were reduced to Rs11 per kg, ex-mill
price, Naeem claimed.
Prices of atta, once again soared to Rs1,050 per
100kg bag in the market on Thursday attributable
mainly to the inter provincial ban on wheat
movement imposed by the Government of Punjab and
unofficial hurdles created by the Sindh Food
Department, he alleged.
"Prices increased because of involvement of three
to four parties between millers and consumers",
Naeem said.
He denied that millers were inventorying wheat.
"Every mill stores wheat for the next 7 to 10 days
as they can not leave their mills empty until the
next buying," he explained.
Naeem alleged that the provincial government was
not releasing wheat for the Rs60 million that had
been paid to the food department.
Wheat quota of 25 mills was banned while licenses
of another 7 mills were confiscated, he said.
"Millers are considering moving the court for
recovery of their amount," he said.
Contradicting these allegations, spokesman for the
Sindh Food Department told The News that there was
no ban on wheat movement in the province.
The Food Department officials were just verifying
whether traders have grain purchasing licenses or
not since hoarders have become the reason for
price hike, he added.
The spokesman said that they were ready to
cooperate with the millers provided the latter do
not increase atta prices.
"The food department did not release wheat from
April to June as wheat was easily available in the
open market. On the other hand, it released more
than 197,000 tonnes in November alone against a
monthly quota of 80,000 tons," the spokesman
claimed.
This is quite contrary to the association’s
statement, which shows that they were given 81,566
tonnes of atta against an allocation of 90,000
tonnes in November.
The News International, Pakistan |
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Pakissan.com; Advisory Point
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