Pakistan : Millers halt stocking until govt’s buying target met
Pakistan Flour Mills Association has agreed to support the government’s wheat procurement drive by avoiding wheat stockpiling until official targets are achieved. Millers will purchase only daily milling requirements, though concerns remain over alleged pressure to sell flour below market rates, potentially causing financial losses.
LAHORE:The Pakistan Flour Mills Association has decided to facilitate provincial government in purchase of wheat.Decision in this connection was made in a PFMA’s Executive Committee, which met at the association’s office under the chairmanship of Punjab Chairman Riazullah Khan.
The meeting was attended by office-bearers and executive committee members from across Punjab, Patron-in-Chief Haji Muhammad Ibrahim, Group leader Asim Raza, former chairmen Liaqat Ali Khan, Mian M Riaz, Chaudhry Abdul Rauf, Anjum Ishaq, Chaudhry Iftikhar Ahmad and Tahir Hanif, along with flour mill owners from the province.
The committee held detailed discussions on the new wheat crop, availability of wheat and flour in the market, mill requirements, and government procurement for strategic reserves.The committee unanimously decided that since government wheat procurement has begun, flour mills will not stock wheat until the government’s procurement target is achieved.
All legal wheat purchases made by flour mills to date have been declared on the web portal. Mills will obtain permits daily to purchase only the quantity of wheat they mill each day, to ensure the govt’s target is met.
The committee, however, requested Food Directorate that until the govt’s target is completed, mills be issued adequate permits for inter-provincial movement of flour so that their investment is not affected.
Meanwhile, it is learnt that the Food Directorate has verbally asked millers to offload approximately 1,200 bags per mill minimum at designated food centres at Rs3,500 per maund. The objective is to facilitate procurement being carried out by aggregators.
At current market rates, this will cause mills to incur a loss of around Rs350 per maund at least.For 1,200 bags of 50kg each, the total loss per mill amounts to approximately Rs1.05 million.
When contacted for seeking comments on verbal orders, PFMA senior leader didn’t deny or accept allegations.A senior official of Food Directorate asked for the evidence saying no notification in this connection has been issued.
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Source : International The News
