‘Flour crisis likely to worsen’

[LRE]

‘Flour crisis likely to worsen’

* CDGL official says millers demand govt release wheat or increase flour price
* CDGL holds Food Department responsible for non-availability of flour in market, release of wheat to millers
* Flour available at only one shop of 50 surveyed by CDGL team

By Rana Kashif


LAHORE: The ongoing flour crisis is likely to worsen because flourmills are linking smooth supply of flour to the release of the government wheat stocks to them, said a CDGL official on Friday.

He said millers had demanded the government release its wheat stocks to flourmills or increase flour prices. The millers claimed that selling flour at the existing price was not viable for them, he added.

The official said the millers had supplied 15 percent of the dealers’ total demand with a condition that they would buy 50-kg bags of fine flour that cost millers Rs 23.5 a kg. He said the government was expected to release its wheat stocks to millers by the end of August.

CDGL District Officer (Co-ordination) Dr Usman admitted that there was a shortage of flour in the city, but said it was not acute.

Responsible: He said that it was the Food Department’s responsibility to ensure smooth supply of flour in the market and to release the wheat stocks to the millers. “Our responsibility is to check whether the flour is available with dealers and retailers, and that it is being sold on the government-prescribed rates,” he added.

He said the CDGL could only inform the Food Department if the flour was not available in the market or was being sold above the rates set by the government.

District Food Controller-I Hafiz Abdul Latif said the millers claimed that it was not possible for them to supply a 20-kilogramme flour bag at Rs 365, when they had bought 40 kilogramme of wheat at Rs 750.

Asked why the Food Department was not releasing wheat stocks to the millers, he said it was a policy matter and the government would decide about the issue.

Zonal Committee of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Chairman for Flour Industry Aslam Bilal Soofi said the flour crisis would worsen if the government did not release its wheat stocks to the millers. He said that when the price of 20 kg flour bag was Rs 365, the price of 40 kg wheat was Rs 625. “Now, 40-kg wheat price is Rs 750 and it is not possible for the millers to supply the 20-kg flour bag at Rs 365,” he added.

He said the government had enough wheat stocks and it should release wheat to the millers to avoid the ongoing flour crisis and to stop its smuggling. Rejecting the CDGL official’s claim that the millers were pressuring retailers and dealers to buy 50-kg bags of fine quality flour, he said no such case had been reported.

Another CDGL official said that there was a lack of co-ordination between the City District Government Lahore (CDGL) and the Food Department.

Availability: The official said flour was available at only one of the 50 shops a CDGL team randomly inspected in Gulberg, Shalimar, Samanabad, and Allama Iqbal and Data Gunj Buxh Towns on Thursday. He said the CDGL had deputed 18 magistrates to check the supply of flour in the city.

He said millers had not provided lists of flour dealers and shops to the Food Department. The CDGL had asked the Food Department for the lists so that the magistrates could check the availability of flour with those dealers and shops, he added. The official said the magistrates’ appointment would be useless if the lists were not provided to the CDGL.

The district food controller-I said the lists were being prepared and would be provided to the CDGL “without any further delay”.

http://www.dailytimes.com.pk/default.asp...008_pg13_1