While the Sindh government is spending Rs 2.5 billion to subsidies flour, millers increased wheat flour prices by Rs 2 per kilogram on Saturday. Under the relief package, the Sindh government announced a subsidy worth Rs 2.5 billion through Sindh Food Department regarding Ramazan package-2012.
As per Ramazan package, the government of Sindh decided to provide 200,000 tons of wheat on subsidised rate to millers during Ramazan to facilitate consumers. The government also announced that with this subsidy millers will provide flour at a discounted rate of Rs 23/kg throughout the province.
However, the flour miller on Saturday has announced to raise Atta price up to Rs 2 per kilogram. Now economy flour, called Dhai No Atta, will be available in the market at Rs 320 per 10 kilogram bag previously being sold at Rs 300 per 10 kg bag. The price of 50kg flour has been increased by Rs 80 per bag to Rs 1,580 per 50 kg bag. In addition, price of fine flour has been mounted by Rs 75 per 50 kilogram bag. With current surge fine flour price increased to Rs 1,675 per 50 kg bag from Rs 1,600.
Sources said rising demand of wheat for export purpose had created panic in the market. Presently, exporters are quickly procuring wheat from open market as wheat prices in the world market are on higher side and they are expecting huge export orders. Under "Sindh Government Ramazan Package - 2012" Karachi region has been allocated 90,000 tons, Hyderabad region 35,000 tons, Sukkur region 45,000 tons, Mirpurkhas region 15,000 tons and Larkana region has been allocated 15,000 tons and Deputy Directors/District Food Controllers will be responsible to ensure the packing and sale of wheat flour at Rs 23 per kg with date of production, price and its origin, they said.
As per government announcement, cheap flour stall would be setup in the different areas, however on the first day of Ramazan no stall was seen in the city, they added. "The rising wheat prices have compelled the millers to revise the prices on upward side", said a miller. When the price of raw material (wheat) is on higher side, how it is possible for millers to sell commodity at lower price, he added.
Although, the government has assured to provide cheap wheat, however it is very limited quantity and mills are procuring major quantity from open market, where prices are on higher side, he said, and added "we will reduce flour prices, when wheat prices will decline in the open market".