Strategy to be devised to control wheat price hike

19 Nov, 2004

The Islamabad Capital Territory (ICT) administration has decided to devise a comprehensive strategy to control increase in flour prices in the capital, besides checking artificial shortage created through hoarding. Talking to Business Recorder here on Thursday, Islamabad Deputy Commissioner Tariq Mehmood Pirzada said that the strategy is being worked out for the retailers of Islamabad and would be announced soon.
To a question, he categorically refuted the news about shortage of flour in the territorial limits of the capital, saying there is no flour crisis in the metropolis and we have enough wheat for about a month.
Tariq, however, said that the task has been assigned to all the concerned departments to conduct raids on various shops to check illegal hoarding as well as artificial shortage created by the manipulators.
When inquired about the new flour selling strategy for retailers, the deputy commissioner said under the expected plan, traders of Islamabad would be bound to sell limited number of flour bags to the shoppers/consumers not exceeding from at least five to seven bags.
There are nearly 36 flourmills operating in Islamabad and each mill has one-day wheat reserves, which is enough to cater to the requirements of citizens of the capital, he added.
The DC also said that owners of the Islamabad flourmills have assured full co-operation to the ICT administration to end artificial crisis of the commodity. They assured that the flourmills are ready to provide atta as per the demand of the consumers.
Moreover, he dispelled the impression that the citizens of capital may face severe wheat/flour shortage in the days to come.
A survey conducted by Business Recorder on Thursday revealed that currently there is no shortage of the consumer items, however, the shopkeepers have predicted a slight crisis during the next three days when residents of Islamabad would come back from their home towns after spending Eid holidays.
It was also observed that the 20kg flour bags are being sold at higher rates.
Talking to Business Recorder, a shopkeeper Abid said that presently we have enough flour bags and we are trying to store maximum bags due to rumours of wheat crisis in Islamabad.
He said that we went to the nearest flourmill to purchase commodity, but the mill-owner refused to supply atta as per our demand, saying that there is shortage of wheat.
It was learnt that Afghan refugee children have been involved in buying flour bags from these mills at higher rates than the prices fixed by the ICT administration aimed at smuggling the commodity to NWFP.
It was also observed that the consumers are getting the bags at Rs250, whereas the government has fixed a rate of Rs234 for retailers in Islamabad. The ex-factory price of 20kg atta bag is Rs228 and they are bound to sell it at Rs 234 to the shopkeepers, but it was being supplied at the rate of Rs240 to the retailers.
The Frontier province bordering the twin cities of Islamabad and Rawalpindi has been facing severe shortage of wheat/flour. Unfortunately, people of NWFP were forced to purchase 20 kg flour bag at Rs 300 and the price of Roti (bread) has alarmingly risen to Rs 4 from Rs 2.
Earlier, a representative delegation of the Islamabad flourmills led by Islamabad Chamber of Commerce and Industry (ICCI) President Tariq Sadiq called on Islamabad Deputy Commissioner Tariq Pirzada.
The delegation drew the attention of the deputy commissioner towards news report appearing in local newspapers regarding artificial shortage of atta and raids of administration on the flourmills.
Sources said that they also strongly protested over the action taken by the administration against the mill-owners.
The delegation vehemently refuted the news and said that there has been no shortage of atta and the flourmills have been giving full co-operation to the local administration.
Tariq had appreciated the co-operation of flourmills from time-to-time, even during the holy month of Ramazan. He instructed the concerned quarters to investigate the issue and brushed aside the impression that flourmills have been raided.
The delegation included Chaudhry Mukhtar Ahmed, General Secretary of the Flourmills Association of Islamabad, Khalid Masud Bhola, Haji Mohammad Akram, Sanaullah Khan, Abdul Rehman and ICCI Vice President Khalid Mehmood Chaudhary.
Since the reports appeared in the press about the flour shortage in and around capital, the flour situation has somewhat eased now.
The flour shortage, which had been hitting many cities in the country for the last few months have finally reached the capital around Eid-ul-Fitr.

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