Flour goes scarce in Rawalpindi, Islamabad Thursday, July 03, 2008
Flour goes scarce in Rawalpindi, Islamabad
* Mills partially suspend supplies g City admin unaware of shortage * Increase in flour price shocks consumers * 20kg bag price up by Rs 20
By Atif Khan and Amir Yasin
ISLAMABAD/RAWALPINDI: Unchecked hoarding, smuggling and decrease in subsidy on wheat by the government has led to a serious shortage of flour on the open markets of Rawalpindi and Islamabad, forcing people to run from pillar to post to grab a bag of flour at inflated rates. Islamabad Union of Flourmills on Wednesday feared that wheat shortage could result into flour crisis in the days to come. An officeholder of the union told Daily Times that wheat was sold on the market at a price higher than that fixed by the government and its quality was lower. He said the market was short of wheat, contrary to the government’s claim of having enough wheat for this year. “In fact, the wheat yield was low this year. The government has hid this fact due to political reasons and started making tall claims,” he said.The city administration has fixed ex-mill flour price at Rs 365 per 20-kg bag while the millers have been demanding that it should be fixed at Rs 400 since the cost of wheat and production has increased. The issue has been lingering on since May. Market Situation: Flour was unavailable at different markets while it was overpriced where available. It was witnessed that shopkeepers were selling a 20-kg flour bag for Rs 400-415. “We have not been supplied flour for two days so where we should bring it from for customers,” said Ghulam Ishaq Khan, a shopkeeper at Karachi Company. He said some traders had stored flour and they were now selling it in black. Imam Baksh, a retailer at Aabpara Market, said flourmills had stopped supply to the market after increase in petroleum prices on June 29.Shafiq Abbasi, a traders’ union officeholder, said the millers and the city administration had agreed on a mechanism for smooth supply of flour to the market but the former had failed to put things in order. Officials of utility stores said the millers had stopped flour supply to the stores because they had a price difference with the government.Mills stop supply: Tariq Sadiq, Islamabad Flourmills Association president, admitted that flour supply to the market was stopped partially as the mills had 25 percent less wheat to grind. He threatened that the mills would close down if the government tried to force millers to sell the flour at unrealistic price. “How can we sell flour at a price less than the production cost?” he questioned.Unaware city administration: Rana Akbar Hayat, Islamabad additional deputy commissioner, denied that the flour was short or overpriced in the market. He said if there were a shortage anywhere, it would be overcome.Meanwhile, a Rs 20 increase per 20 kg bag of wheat flour by the retailers came as a rude shock to the consumers on Wednesday after an increase in fuel and electricity rates.The retailers were selling a 20-kg bag at Rs 395, which was earlier selling at Rs 375. The shopkeepers are also not displaying the flour price list.Flour shortage: Moreover, flour was not available on the market. Flour millers have suddenly pushed up the rates of the commodity. Shopkeepers said the prices might further shoot up if the government took no action against the millers to stabilise the price.Many retailers were selling flour at Rs 22-25 per kg against officially fixed price of Rs 20 per kg, while others were set to charge the revised rate from Thursday (today).Ghulam Fareed, a shopkeeper at Saddar Bazaar, said the flourmills were not supplying flour to them for the last two days. He said some people managed to get flour from mills after paying extra amount.Mumraiz Khan, another shopkeeper, said he got 10 bags of 20 kg flour at revised price after standing in long queue outside a flourmill. He said the ex-mill rate of 20 kg bag was Rs 385 against the previous rate of Rs 365.Ex-mill rate goes up: Sheikh Muhammad Shabbir, former president, Pakistan Flour Mills Association, said the association had increased the price of 20 kg flour bag from Rs 365 to Rs 385, as they were getting wheat at Rs730-750 per 40-kg from the open market.He said increase in fuel and electricity charges was another cause of increase in flour price.The salaried and working class demand that the government control flour price, as they are already finding it hard to manage their household budget.Syed Zulfikar, a shopper at Westridge Bazaar, said unprecedented increase in price of basic food items would badly affect the common man. He complained that due to increase in prices of petroleum products, kitchen items’ prices had also gone up. He said flour was not available on the market and some shopkeepers were charging extra.Rizwan Aziz, another shopper who was searching for flour bag in Dhoke Hassu Market, said the government’s claims of improvement in socio-
economic condition of the masses had proved false.
http://www.dailytimes.com.pk/default.asp?page=2008\07\03\story_3-7-2008_pg11_10
* Mills partially suspend supplies g City admin unaware of shortage * Increase in flour price shocks consumers * 20kg bag price up by Rs 20
By Atif Khan and Amir Yasin
ISLAMABAD/RAWALPINDI: Unchecked hoarding, smuggling and decrease in subsidy on wheat by the government has led to a serious shortage of flour on the open markets of Rawalpindi and Islamabad, forcing people to run from pillar to post to grab a bag of flour at inflated rates. Islamabad Union of Flourmills on Wednesday feared that wheat shortage could result into flour crisis in the days to come. An officeholder of the union told Daily Times that wheat was sold on the market at a price higher than that fixed by the government and its quality was lower. He said the market was short of wheat, contrary to the government’s claim of having enough wheat for this year. “In fact, the wheat yield was low this year. The government has hid this fact due to political reasons and started making tall claims,” he said.The city administration has fixed ex-mill flour price at Rs 365 per 20-kg bag while the millers have been demanding that it should be fixed at Rs 400 since the cost of wheat and production has increased. The issue has been lingering on since May. Market Situation: Flour was unavailable at different markets while it was overpriced where available. It was witnessed that shopkeepers were selling a 20-kg flour bag for Rs 400-415. “We have not been supplied flour for two days so where we should bring it from for customers,” said Ghulam Ishaq Khan, a shopkeeper at Karachi Company. He said some traders had stored flour and they were now selling it in black. Imam Baksh, a retailer at Aabpara Market, said flourmills had stopped supply to the market after increase in petroleum prices on June 29.Shafiq Abbasi, a traders’ union officeholder, said the millers and the city administration had agreed on a mechanism for smooth supply of flour to the market but the former had failed to put things in order. Officials of utility stores said the millers had stopped flour supply to the stores because they had a price difference with the government.Mills stop supply: Tariq Sadiq, Islamabad Flourmills Association president, admitted that flour supply to the market was stopped partially as the mills had 25 percent less wheat to grind. He threatened that the mills would close down if the government tried to force millers to sell the flour at unrealistic price. “How can we sell flour at a price less than the production cost?” he questioned.Unaware city administration: Rana Akbar Hayat, Islamabad additional deputy commissioner, denied that the flour was short or overpriced in the market. He said if there were a shortage anywhere, it would be overcome.Meanwhile, a Rs 20 increase per 20 kg bag of wheat flour by the retailers came as a rude shock to the consumers on Wednesday after an increase in fuel and electricity rates.The retailers were selling a 20-kg bag at Rs 395, which was earlier selling at Rs 375. The shopkeepers are also not displaying the flour price list.Flour shortage: Moreover, flour was not available on the market. Flour millers have suddenly pushed up the rates of the commodity. Shopkeepers said the prices might further shoot up if the government took no action against the millers to stabilise the price.Many retailers were selling flour at Rs 22-25 per kg against officially fixed price of Rs 20 per kg, while others were set to charge the revised rate from Thursday (today).Ghulam Fareed, a shopkeeper at Saddar Bazaar, said the flourmills were not supplying flour to them for the last two days. He said some people managed to get flour from mills after paying extra amount.Mumraiz Khan, another shopkeeper, said he got 10 bags of 20 kg flour at revised price after standing in long queue outside a flourmill. He said the ex-mill rate of 20 kg bag was Rs 385 against the previous rate of Rs 365.Ex-mill rate goes up: Sheikh Muhammad Shabbir, former president, Pakistan Flour Mills Association, said the association had increased the price of 20 kg flour bag from Rs 365 to Rs 385, as they were getting wheat at Rs730-750 per 40-kg from the open market.He said increase in fuel and electricity charges was another cause of increase in flour price.The salaried and working class demand that the government control flour price, as they are already finding it hard to manage their household budget.Syed Zulfikar, a shopper at Westridge Bazaar, said unprecedented increase in price of basic food items would badly affect the common man. He complained that due to increase in prices of petroleum products, kitchen items’ prices had also gone up. He said flour was not available on the market and some shopkeepers were charging extra.Rizwan Aziz, another shopper who was searching for flour bag in Dhoke Hassu Market, said the government’s claims of improvement in socio-
economic condition of the masses had proved false.
http://www.dailytimes.com.pk/default.asp?page=2008\07\03\story_3-7-2008_pg11_10
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