Prices disparity in provinces: Atta smuggling from Punjab to NWFP continues

29 Jan, 2009

Disparity in the prices of flour in the provinces has led to inter-provincial smuggling of the essential kitchen items and the federal and provincial governments seem least interested in curbing this menace, analysts said.
A visit of this reporter to North West Frontier Province (NWFP) last week revealed that a comparatively low price of flour in the wheat-rich Punjab province and lack of government's check has made it easy for the criminal elements to make black money by smuggling the essential item from Punjab to NWFP.
According to a retailer in Manki village of Sawabi District the smuggling of flour from Punjab to NWFP is carried out through land and river routes. He said flour was being smuggled through motorway in taxis and through River Indus, from "Formully" village of Punjab to "Beeki Nabi", "Tanu" and "Bazar" villages of Sawabi District (NWFP) in boats. "Seats are removed from the taxis and around 40 bags of flour (20 kilogram each) are loaded in it to smuggle atta to NWFP," said the retailer, who himself was one of the buyers of the smuggled flour.
He alleged said due to the inaction of the Motorway Police it was possible for the smugglers to smuggle the commodity easily. According to the retailer the wholesale price of a 20-kg bag of the white flour, which has great demand in NWFP, in Punjab was ranging from Rs 410 to Rs 430. "This 20-kg bag is sold to the wholesalers in NWFP at Rs 540, thus ensuring a handsome Rs 100 plus profit on each bag," he said adding that "this 20-kg bag is retailed at Rs 570". And the needy people have no choice but to purchase atta at whatever the price.
The smuggling, which is an explicit challenge to the so-called writ of federal and provincial governments, the poverty-stricken locals, with some exceptions, were quite happy with the illegal activity, which was providing them with the daily-use food item on comparatively low rates.
"It's good as we get flour on comparatively low rates," said Fazal Wahid, a farmer by profession living in Torder village. Noor Khan a student of Manki had, however, a different view. "The flour is sub-standard, it does not produce a good bread." The retailers also complained about the poor quality of the smuggled commodity. "Major disadvantage is that it is sold by the unauthorised dealers who do not take it back when told about the poor quality," said Mohammad Sher Azam.
He, however, said those wholesalers who had a government license were exchanging the rejected flour bags. This reporter was also shown a 20-kg bag of flour that read "Campbel Pure Flour Mills: Fatahjang Road Attock City". Parity in the prices of essential food items, like flour, sugar, ghee, edible oil, daal etc, on provincial level is an oft-reiterated demand from different politico-social sections of the society, which the proponents think, if executed, would at least put a halt to inter-provincial illegal trade.

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