After exploiting wheat growers, the nexus between flour millers and provincial food department has now turned its attention towards consumers in urban areas. Although wheat prices in the province have crashed this season, but the flour millers, with connivance of the Punjab Food Department, are still selling flour at exorbitantly high prices.
Agriculture experts say that the flour millers are charging an extra Rs 4 per kilogram. They argue that when the wheat was available at Rs 950 to Rs 1,000 per maund, a 20-kilogram flour bag was available at Rs 600 in the open markets. However, wheat price now range between Rs 800 and Rs 825 per maund, but flour is selling at Rs 535-578 per 20-kilogram in different parts of the province. This, the experts say, is ‘unjustified’ and that it puts big question mark on the role of the Punjab Food Department.
Speaking to Pakistan Today, Agri-Forum Pakistan Chairman Muhammad Ibrahim Mughal has indicated that wheat flour prices should settle between Rs 500 and Rs 510 per 20-kilogram bag. Considering the present prices in different grain markets in the province, he estimates that wheat is available at Rs 20- 22 per kilogram and after adding transportation and grinding charges, wheat flour should be available at Rs 25 per kilogram in 20-kilogram bag and Rs 28 in case of wheat chakki flour.
Commenting on the recent discount of Rs 15 per 20-kilogram bag, which was announced by the Pakistan Flour Mills Association (PFMA), Mughal said that flour miller with the connivance of Food Department had offered peanuts to urban consumers. He demanded the provincial Food Department to break the nexus with flour millers and ensure rational flour price for consumers.
Another agriculture expert Hamid Malhi estimates that wheat prices have dropped by minimum Rs 150 per maund, which indicates a 20-kilogram wheat flour bag should witnessed a minimum discount of Rs 50 per bag. He advocated that for any reason if wheat prices had dropped this year, the benefit of this discount should be passed on to the consumer. Speaking to Pakistan Today, PFMA former chairman Bilal Aslam Sufi tried to dispel the impression that flour mills were fleecing urban consumers.
He denied the fact that wheat was available in grain markets at Rs 825-850 per maund. He indicated that wheat was available at Rs 915-950 per maund to private sector and flour mills were making legitimate profits. Responding to a query, he said Food Department officials were real culprits, who were buying wheat at Rs 850 per maund from farmers and selling it to the government at official price of Rs 950 per maund. He also underlined that a former PFMA chairman had meeting with the provincial Food Minister, who announced discount in flour prices to flatter the Punjab Food Minister.
Another former PFMA chairman Asim Raza Ahmad also expressed similar views. He also denied that wheat prices crashed this year owing to mismanagement at the part of provincial government. He said that wheat was available at Rs 910 per maund in grain market in Lahore. He underlined that as wheat prices were varying in different parts of the province, so it was impossible to sell wheat at uniform rate.
