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Hoarding behind flour price hike

By Hasan Ali

LAHORE: The shortage of flour ostensibly caused by hoarding and smuggling has forced people to buy flour at a higher price.

People held flourmills and traders responsible for the shortage while flourmills have blamed the price hike on the government alleging that the government was playing in the hands of black marketeers and hoarders. A housewife, Samina Ahmed, of Shadman said, “The government announced on Friday that a strict action would be taken against hoarders and profiteers but so far it has proved a tall claim.”

Almost all flourmills have stopped supplying flour in the market with the start of Ramazan, which has caused shortage and price hike. One of the reasons was that millers were receiving wheat at a cost of Rs 620 per 40 kilogrammes. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) zonal committee chairman Bilal Aslam Soofi and former chairman of the Flourmills Association Punjab said the government should have released wheat at least one month prior to Ramazan. He said the quota assigned by the government for flourmills was much less than the demand. He said the Punjab’s wheat demand was 24,000 tonnes while the government was providing millers with only 10,000 tonnes, adding that millers had to buy rest of the wheat from the open market at a higher price.

Food Department district officer Chaudhary Munir said the government had increased the wheat quota for flourmills and that flourmill associations and the government had reached a consensus on the issue. “The shortage will end as soon as millers will start supplying flour in the market,” he said, adding that the flour price hike would also be controlled with the increase of supply and that there would be no price difference between the open market and Ramazan bazaars.

Flour was not available in numerous areas, including Gulberg, Cavalry Grounds, Yateem Khana, Muslim Town, Shadman, Shadbagh. Some shopkeepers were selling a 20-kilogramme flour bag at Rs 320 to Rs 330 while the government had fixed Rs 290 for the bag.

District Coordination Officer Ijaz Ahmed agreed that there was flour shortage and price hike in the city and promised counter measures to end the hike. He said he would personally visit Ramazan bazaars to ensure the steady supply of flour. He said a meeting would be convened of traders, mill owners and representatives of trade associations to solve the problem. He also said that the country had a bumper wheat crop this season but smuggling and price increase in the international market had affected the country.

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