Flour mills not satisfied as open market price less than official rate

KARACHI - The liberal policy of wheat supply of the Sindh government has received lukewarm response from the flour mills, as the price of commodity in open market is below than the official price.
The Food Department of Sindh government, two days ago, unveiled the policy to supply wheat to flour mills and 'Atta Chakies (small grinding units) on the basis of their need, while the government has fixed the issue price of commodity Rs975 per 40kg for the current season.
However, the new policy of the Sindh government has received lukewarm response from the flour mills because the prevailing price of wheat in open market is also equivalent to the official price of Rs975-40 kg, a flour mill owner said, adding that their are other expenditures and issues involved in getting wheat on official price from Sindh government put off our interest.
A senior member of flour mills body Pakistan Flour Mills Association (PFMA) Sindh zone Haji Ilyas told The Nation that the supply of wheat from the government will remain slow because the stocks of the commodity procured during Ramadan are still available with them, while mills have to pay Rs86-per 100 kg bag on account of 'Bardana to government against Rs23 on old 'Bardana to private sector.
Keeping additional expenditures in view, the official price of wheat stands higher than the prevailing price of Rs2575-100kg of commodity in open market, he said.
Pakistan Flour Mills Association (PFMA) Sindh Chapter Chairman Haji Yousaf confirmed the lukewarm to the liberal policy in wheat supply of Sindh government and said flour mills will start procurement of wheat from Provincial Food Department from next week.
He said that there is minor variation between the prices of commodity of government and open market, and flour mills already have stocks of commodity available with them, which will take one weeks time to dispose it off.
However, the prices of wheat will increase in the open market because the stocks of commodity will start declining from next week, he anticipated. The flour mills will opt for purchasing commodity from the government, he added.
He suggested to the Sindh government to allow the private sector to procure the wheat from Provincial Food Department, as this has already been allowed by the Punjab government. In this regard, a delegation of flour mills body will meet the Sindh Food Minister Mir Nadir Ali Khan Magsi and Provincial Food Secretary Kamran Naveed Baloch in two days.
Meanwhile, Sindh Food Secretary Kamran Naveed Baloch defended the liberal policy of wheat supply and said that Sindh has at least 1.5 million tons of wheat stocks with provincial food department, which required additional amount in terms of maintenance.