KARACHI: Profiteers have started cashing in on the
flour millers’ strike and are now charging Rs 30-40 per 10 kg bag more
from the consumers on the pretext of shortage of the commodity.
Around 80 flour mills had stopped production of flour from August 1 causing suspension in supply of flour in the markets. As a result, some retailers became active in demanding higher prices on the available stocks on rising flour demand.
Flour millers went on the strike from August 1 as Commissioner Karachi was forcing the millers to sell flour at Rs33 per kg. The situation got tense after harassment and arrest of some staffers of mills by price regulator.
Most consumers are already buying flour and other edible items in bulk as Eid nears.
It is worth noting that in case the issue between the Commissioner Karachi and flour millers does not resolve amicably, traders fear law and order situation and retailers-customers tussle over flour.
Some retailers were seen charging Rs470-480 per 10 kg bag of various brands from Rs440 per bag to cash the rising demand on dwindling supplies.
General Secretary Karachi Retail Grocers Group (KRGG), Farid Qureishi strongly urged the Commissioner Karachi to provide security to the retailers as people may go wild against retailers after failing to find the most essential item.
He urged the Commissioner and millers to settle their row peacefully before Eid ul Fitr otherwise consumers would suffer badly. He feared that people may start raiding the shops to snatch away flour bags at any cost. He urged the Commissioner to immediately hold a meeting with the flour millers to resolve the issue so that millers could resume their production.
Farid said that flour stocks are fast depleting in view of pre-Eid shopping and monthly buying by people.
Chairman Karachi Wholesalers Grocers Association (KWGA), Anis Majeed also feared law and order situation in the city over falling stocks and rising demand.
Chairman Pakistan Flour Mills Association (Sindh Zone) Chaudhry Ansar Jawed said that flour shortage, which already got underway coupled with rising flour price on Friday, may get more with every passing day.
Ansar Jawed said he did not receive any call from Commissioner Office regarding any meeting with the millers to settle the issue. Commissioner Karachi was pegged on his old stance urging millers to release flour at Rs33 per kg which is not possible in view of wheat rate at Rs35.50 per kg in the open market.
He reiterated that the Commissioner was responsible for creating flour crisis as he picked up an old notification of Sindh government regarding fixing of Rs33 per kg price.
He said the Food Department of Sindh released wheat stocks to the millers up to April 15, 2013 from the government stocks at the issue price of Rs2,800 per 100 kg bag. Flour price of Rs33 per kg was fixed based on the issue price of wheat at Rs2,800 per 100 kg bag. Wheat supply to flour millers had been stopped from April 16 due to arrival of new crop 2013 and flour millers were meeting their requirement by procuring wheat from the open market.
However, he added that the Food Department on July 11, 2013 had withdrawn the price fixing notification about flour price at Rs33 per kg (ex-mill rate) on the basis that the department is not releasing wheat to the millers.
He said that the Food Department would start releasing wheat to the millers hopefully in the current month or September after deciding the issue price of new 2013 crop.
Around 80 flour mills had stopped production of flour from August 1 causing suspension in supply of flour in the markets. As a result, some retailers became active in demanding higher prices on the available stocks on rising flour demand.
Flour millers went on the strike from August 1 as Commissioner Karachi was forcing the millers to sell flour at Rs33 per kg. The situation got tense after harassment and arrest of some staffers of mills by price regulator.
Most consumers are already buying flour and other edible items in bulk as Eid nears.
It is worth noting that in case the issue between the Commissioner Karachi and flour millers does not resolve amicably, traders fear law and order situation and retailers-customers tussle over flour.
Some retailers were seen charging Rs470-480 per 10 kg bag of various brands from Rs440 per bag to cash the rising demand on dwindling supplies.
General Secretary Karachi Retail Grocers Group (KRGG), Farid Qureishi strongly urged the Commissioner Karachi to provide security to the retailers as people may go wild against retailers after failing to find the most essential item.
He urged the Commissioner and millers to settle their row peacefully before Eid ul Fitr otherwise consumers would suffer badly. He feared that people may start raiding the shops to snatch away flour bags at any cost. He urged the Commissioner to immediately hold a meeting with the flour millers to resolve the issue so that millers could resume their production.
Farid said that flour stocks are fast depleting in view of pre-Eid shopping and monthly buying by people.
Chairman Karachi Wholesalers Grocers Association (KWGA), Anis Majeed also feared law and order situation in the city over falling stocks and rising demand.
Chairman Pakistan Flour Mills Association (Sindh Zone) Chaudhry Ansar Jawed said that flour shortage, which already got underway coupled with rising flour price on Friday, may get more with every passing day.
Ansar Jawed said he did not receive any call from Commissioner Office regarding any meeting with the millers to settle the issue. Commissioner Karachi was pegged on his old stance urging millers to release flour at Rs33 per kg which is not possible in view of wheat rate at Rs35.50 per kg in the open market.
He reiterated that the Commissioner was responsible for creating flour crisis as he picked up an old notification of Sindh government regarding fixing of Rs33 per kg price.
He said the Food Department of Sindh released wheat stocks to the millers up to April 15, 2013 from the government stocks at the issue price of Rs2,800 per 100 kg bag. Flour price of Rs33 per kg was fixed based on the issue price of wheat at Rs2,800 per 100 kg bag. Wheat supply to flour millers had been stopped from April 16 due to arrival of new crop 2013 and flour millers were meeting their requirement by procuring wheat from the open market.
However, he added that the Food Department on July 11, 2013 had withdrawn the price fixing notification about flour price at Rs33 per kg (ex-mill rate) on the basis that the department is not releasing wheat to the millers.
He said that the Food Department would start releasing wheat to the millers hopefully in the current month or September after deciding the issue price of new 2013 crop.
