Contrary to the government's tall claims of providing cheaper flour to the consumers and production of bumper wheat crop in the country, flour mill-owners have increased the price of 20kg flour bag by Rs 20-25 for the second time in less than three months. According to a survey conducted by Business Recorder here on Tuesday, a 20kg flour bag, which was available at Rs 242, is now being sold at prices ranging between Rs 260 and Rs 265 in the twin cities. Likewise, the price of 40kg bag has also gone up by Rs 50 per bag.
Earlier, the 20kg flour bag was available at Rs 242, which is now being sold at Rs 265, whereas ex-factory rate is Rs 250 and it should be sold at Rs 258.
The mill-owners have also increased the price of 80kg flour bag by Rs 115 and now it is being sold at Rs 1,115 instead of Rs 1,000.
On the other hand, All Pakistan Flour Mills Association (APFMA) has called on Prime Minister Shaukat Aziz to immediately announce wheat issuing price to bring down the soaring flour prices.
Talking to Business Recorder, APFMA General Secretary Chaudhry Mukhtar Ahmed said, due to non-fixation of wheat issuing price, the private investors were in a dilemma and have started hoarding the commodity to raise the prices.
In view of the current uncertain situation and to provide relief to the consumers, the government should immediately declare the exact wheat issuing price for the mill-owners, he added.
Mukhtar said that another big reason of price increase is demand and supply gap as wheat is being supplied to Karachi from wheat growing areas like Bahawalnagar and Haroonabad.
At present, about 1.5 million tonnes wheat is available in the market, but the private investors are reluctant to sell it to the flour mills.
He demanded of the government to give subsidy on wheat issuing price instead of flour, which is being sold at the Utility Stores to benefit millions of people.
He warned that the situation could worsen further as the pressure is building up on the flour mill-owners due to increased wheat prices. The flour mill-owners are buying wheat from the open market at Rs 455 per 40kg, while it was available earlier at Rs 432. He said that the situation is deteriorating day-by-day due to anti-investors policy of the government.
The APFMA has also called for abolishing quota policy and demanded to liberalise wheat issuing policy.
Last year, 40kg wheat bag was available at Rs 390. The new budget, instead of providing relief to the people, is now turning out to be anti-people as the prices of various daily use items has gone up. Like flour, sugar and meat prices have also registered an upsurge.