Pakistan Flour Mills Association (PFMA) Punjab Zone has asked the government to prepare a long term strategy to check wheat flour crisis in the province in future. PFMA Punjab Chairman Chaudhry Khaleeq Arshad told Business Recorder here on Thursday the government must adopt a liberal policy with regard to issuance of wheat to flour mills, as only through that means wheat flour prices could be maintained in the market. He was of the view government must increase the quota of wheat to flour mills as it was necessary for ensuring the availability of wheat flour in the market.
'At present, the government is releasing 10,000 tones wheat to 500 flour mills of the province as against total requirement of 18,000 tones', he said.
He said government had decided to continue additional wheat quota of 4000 tones to flour mills. This quota was approved for the month of Ramazan.
According to him, wheat stocks lying in the open market had started drying due to the end of wheat season. As a result, the wheat price had increased to Rs 490 per 40 kg in the open market, however the government was providing wheat to flour mills at the rate of Rs 390 per 40 kg.
He said if flour mills grind only that wheat supplied by the government there would be shortage of wheat flour in the province. On the other hand, if flour mills grind wheat stocks which were purchased from private sector on costly rates, the price of wheat flour would be definitely increased due to increase in raw materiel. In order to tackle this problem, the government should increase the wheat quota to flour mills.
He said the Punjab government was trying to get 500,000 tones wheat from federal government after which the situation would be improved.
To a question, he said at present the ex-mill rate of wheat flour was around Rs 235 for 20kg bag and its price would further increase if the government did not accept the demands of flour mills.
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