Only two-to-three days wheat stocks are left with 90 percent flour mills in Punjab after which flour crisis would further deepen in the country, Flour Mills Association sources told Business Recorder, here on Monday.
They said the deadlock between the Punjab government and the flour mills over fixation of flour price persists as PFMA Punjab chapter has decided not to hold further talks with the government.
They accused the Food Department of adopting a totally unrealistic attitude with mill owners and misguiding Chief Minister Shahbaz Sharif about the ground realities. "How can we supply a 20-kg flour bag at Rs365 when we buy 20-kg wheat @ of Rs400 plus from the open market," a flour mill owner said.
Sources said the government and flour mills have to evolve a mechanism to supply flour to the common man at reasonable rates sooner than later. "Either the government should supply wheat to flour mills from its own stocks or allow mills to buy wheat from the open market and fix flour price accordingly," sources emphasised.
Meanwhile, market sources say that flour millers have been getting Rs 425 average price for 20-kg flour bag and asking the Punjab government not to insist on Rs365 per 20-kg bag. They pointed out that Punjab government has fixed 20-kg flour bag at Rs 365 but the millers have been getting Rs 485 delivery price from the NWFP markets. Thus accumulated price of 40-kg flour is Rs850 and average price of 20-kg bag becomes Rs425 per bag.
Sources said Punjab flour mills are trucking 7,000 to 10,000 tons legally and about 2,000 tons flour illegally to NWFP daily. They said flour mills need more than 18,000 tons daily to meet flour needs of Punjab.
On the other hand, Punjab food department has taken the plea that the majority of the millers had purchased wheat at Rs625 to Rs650 per 40-kg from the open market, therefore they should not be allowed to fleece people by creating artificial shortage in the province. The department has reduced the number of sale points from 50 to 16 and increased flour supply in the open market, however the situation has not improved.