LAHORE: Flour millers urged the government on Saturday to not include flour in the upcoming Ramzan Package as subsidy given on it only benefitted certain people instead of the consumers.
A prominent personality in the flour milling industry Haji Muhammad Bashir and Muhammad Khalique Arshad, former Chairman of Pakistan Flour Mills Association-Punjab and National Group Director, raised the demand while talking to members of Agricultural Journalists Association (AJA) on Saturday.
They said that the government was buying wheat in the current wheat procurement season at Rs 1,300 per maund while it would be releasing wheat from the stores to the flour mills at Rs 800 per maund. The difference of Rs 500 per maund will increase the chances of corruption in the subsidy amount, they added.
They said that as Ramzan was about to commence with the start of the arrival of the new wheat crop this year, the rates of flour would be lower than the present rates. They said that the recently 20 kilograms flour bag had registered a decrease of Rs 20 per bag and there might be another decrease of Rs 10 per bag in the coming days as the rate of wheat was expected to fall with the arrival of fresh wheat in the market.
Khalique Arshad also urged the government to gradually distance itself from the wheat procurement procedure and announce release price of wheat at the start of the wheat procurement season so as private sector could jump into the field with full confidence. He was of the view that subsidy amount saved thus from procurement may directly give to the growers for lowering the price of seed, fertilizer, diesel, water charges, electricity and agricultural equipment which would lead to lower wheat price and ultimately lower flour prices. He said it will also help lowering the wheat prices in Pakistan in line with the international prices. “Currently, our wheat prices are hovering around US 350 dollars per ton while internationally these prices are around US 210 dollars per ton,” he added.
He said all the provincial governments and Pakistan Agricultural Services and Supplies Corporation (PASSCO) produce almost 7.5 million tons of wheat annually at the rate of Rs 1300 per maund. They spend another Rs 400 per maund on storage, transportation, markup and salaries of the officials concerned. He added that the government issued wheat to flour mills at Rs 1275 per maund and subsidy gave on it benefit all segments of the society. He was of the view that the government should give targeted subsidy, thus benefiting the deserving ones only instead of everyone.
Another proposal floated by the veteran flour millers was that the government should create a permanent export window for wheat. “The world should know that Pakistan will export a certain quantity of wheat at least annually so a market for Pakistani wheat and its products can emerge in the international market,” they said and added that export would help running the currently closed industrial units too, thus fetching foreign exchange and creating job opportunities.
They regretted that Pakistan was losing traditional Afghan market because of the government policies and higher rates. They said that the government should devise a policy in consultation with the flour millers in this regard. They also urged the government to construct steel silos for storing wheat instead of traditional silos so as to stop wastage of the commodity and maintain its quality.