Government urged not to include flour in Ramazan package

Flour millers have urged the government not to include 'flour' in the coming Ramazan Package, as a major chunk of the subsidy given on it benefits only certain people instead of the consumers. They said that the government will be buying wheat in the current procurement season at Rs 1300 per maund while it will be releasing wheat from its stores to the flour mills at Rs 800 per maund. Difference of Rs 500 per maund will increase the chances of corruption in the subsidy amount, they alleged.
Haji Muhammad Bashir, popularly known as father of flour milling industry, and Muhammad Khalique Arshad former Chairman Pakistan Flour Mills Association-Punjab and Director National Group raised this demand while talking to members of the Agricultural Journalists Association (AJA) here on Saturday.
They said that as Ramzan-ul-Mubarak is starting with the start of arrival of new wheat crop this year, so the rates of flour will be lower than the present rates. They said that recently 20 kilograms flour bag has registered a decrease of Rs 20 per bag and there may be another decrease of Rs 10 per bag in the coming days as rate of wheat may 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 in to the field with full confidence.
He was of the view that subsidy amount saved thus from procurement may directly given 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 $350 dollars per tons while internationally these prices are around $210 dollars per ton,' he added.
He said all provincial governments and Pakistan Agricultural Services & Supplies Corporation (PASSCO) by around 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. But the government issues wheat to flour mills at Rs 1275 per maund and subsidy given on it benefit all segments of the society. He was of the view that the government should give targeted subsidy thus benefiting the deserving only instead of all.
They regretted that Pakistan was losing traditional Afghan market because of 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.