Pakistan Flour Mills Association (PFMA) has urged the State Bank of Pakistan to restore running finance facility for flour mills, besides reducing cash margin from 25 percent to 10 percent.
Addressing a hurriedly press conference along with other office-bearers at Karachi Press Club here Saturday, central chairman PFMA Mohammad Naeen Butt said that running finance facility was vital for flour mills to run their business. If this is not restored, flour mills will shut down their businesses", he added.
He said that SBP has enhanced cash margin rate from 10 percent to 25 percent. This is highly unfair and flourmills cannot arrange this much cash for the purchase of wheat, he noted.
Butt said the government needs to import at least 2 million tons of wheat to meet domestic demand in the wake of 15 percent production shortage. Wheat consumption is 22 to 24 million tons in the country whereas the production is estimated at 21 million tons, he observed.
He said that SBP and Ministry of Food and Agriculture was not paying attention to our plea and this is the reason why flourmill owners were holding a press conference.
He was of the opinion that there should be open market policy regarding for the promotion of flour industry but if the government wanted to remain in the field then there should be only two players in the market, government and flour mill owners.
Butt noted that the past policy of issuing wheat procurement licenses to non-genuine buyers was the major reason for hoarding and profiteering which resulted in the shortage of flour in the country.
Replying to a question, he said that the government should maintain a buffer stock of at least 5 to 6 million tons of wheat in the country. Butt said that the government should offer a reasonable price for the purchase of wheat to encourage growers. He also urged the government to lift ban on inter-provincial movement of wheat and instead seal the borders to discourage smuggling.
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