No end in sight for Islamabad flour shortage Saturday, July 19, 2008
No end in sight for Islamabad flour shortage
* Wholesalers blame crisis on poor supply, millers on reduced production
By Atif Khan
ISLAMABAD: The local residents complain of getting flour at inflated rates and blame it on the unending flour shortage.Dilawar Abbasi, a resident of G-6, said that first flour was unavailable on the market and if someone managed to find it, they had to pay Rs 420 to Rs 450 for a 20kg bag.The capital’s outskirts like Bharakahu and Satra Meel have also reported flour shortage and its sale at Rs 450 per 20kg and above.Wholesalers hold millers responsible for the floor scarcity, saying that they’re receiving floor bags much below their demand. They allege millers supply flour bags to dealers and not them for sale on the black market for high profits.Qadir Bakhsh, a trader at Aabpara Market, told Daily Times that millers supplied him flour bags less than half of the orders. He said he had to procure flour from black marketers at Rs 400 per 20kg bag or above through the government had fixed the price at Rs 375.Pakistan Flour Mills Association (PFMA) member Tariq Sadiq acknowledged that Islamabad had flour in short supply. He said local millers had cut flour production by 70 percent, which had led to flour scarcity in the city.He flayed the government for trying to control wheat and flour prices, which went against the mechanism of open market. He said millers could sell flour to the market at controlled rate only if they got subsidy on wheat.Sadiq said wheat price had shot up on the market in the last three days. “The price has increased from Rs 750 to Rs 780 per 40kg sack but we’re being compelled to sell flour at Rs 375 per 20kg bag. This is not possible for us and may force us to close down mills,” he said.He also said smuggling of wheat stocks to neighbouring countries like Iran and Afghanistan was continuing as they fetched suppliers a high price there. He said that the government would have to stop wheat smuggling or import over 2.5 million tons of wheat to avert looming flour crisis in the country.Daily Times has learnt reliably that Islamabad administration has ‘secretly’ allowed millers to supply flour beyond permitted quota to the NWFP to meet their expenses. A senior official of the Islamabad administration wanting not to be named said that they’re to ensure sale of flour at controlled rate but lacked manpower to enforce it. He said Islamabad had only three assistant commissioners to take care of its affairs including law and order. He said the entire administration had been busy handling protests by PTCL workers for the last three days.
http://www.dailytimes.com.pk/default.asp?page=2008\07\19\story_19-7-2008_pg11_7
* Wholesalers blame crisis on poor supply, millers on reduced production
By Atif Khan
ISLAMABAD: The local residents complain of getting flour at inflated rates and blame it on the unending flour shortage.Dilawar Abbasi, a resident of G-6, said that first flour was unavailable on the market and if someone managed to find it, they had to pay Rs 420 to Rs 450 for a 20kg bag.The capital’s outskirts like Bharakahu and Satra Meel have also reported flour shortage and its sale at Rs 450 per 20kg and above.Wholesalers hold millers responsible for the floor scarcity, saying that they’re receiving floor bags much below their demand. They allege millers supply flour bags to dealers and not them for sale on the black market for high profits.Qadir Bakhsh, a trader at Aabpara Market, told Daily Times that millers supplied him flour bags less than half of the orders. He said he had to procure flour from black marketers at Rs 400 per 20kg bag or above through the government had fixed the price at Rs 375.Pakistan Flour Mills Association (PFMA) member Tariq Sadiq acknowledged that Islamabad had flour in short supply. He said local millers had cut flour production by 70 percent, which had led to flour scarcity in the city.He flayed the government for trying to control wheat and flour prices, which went against the mechanism of open market. He said millers could sell flour to the market at controlled rate only if they got subsidy on wheat.Sadiq said wheat price had shot up on the market in the last three days. “The price has increased from Rs 750 to Rs 780 per 40kg sack but we’re being compelled to sell flour at Rs 375 per 20kg bag. This is not possible for us and may force us to close down mills,” he said.He also said smuggling of wheat stocks to neighbouring countries like Iran and Afghanistan was continuing as they fetched suppliers a high price there. He said that the government would have to stop wheat smuggling or import over 2.5 million tons of wheat to avert looming flour crisis in the country.Daily Times has learnt reliably that Islamabad administration has ‘secretly’ allowed millers to supply flour beyond permitted quota to the NWFP to meet their expenses. A senior official of the Islamabad administration wanting not to be named said that they’re to ensure sale of flour at controlled rate but lacked manpower to enforce it. He said Islamabad had only three assistant commissioners to take care of its affairs including law and order. He said the entire administration had been busy handling protests by PTCL workers for the last three days.
http://www.dailytimes.com.pk/default.asp?page=2008\07\19\story_19-7-2008_pg11_7
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