Flour prices soar up by Rs4.25 per kg

Flour prices soar up by Rs4.25 per kg

Friday, May 18, 2012: PFMA (Punjab Flour Mills Association) has increased the price of a 20kilogrames (kg) bag by Rs85 or Rs4.25 per kg.

The PFMA has taken the step in the wake of increase in the wheat price in the open market and the Punjab Chief Minister’s decision of not allowing an increase in the flour price despite the recommendations of the committee headed
by his senior adviser Zulfiqar Khosa.

The association has informed the food department and the district coordination officers across the province that the ex-mill price of the 20kg bag will be Rs650 (32.5 per kg) and it will be sold to consumers at Rs675 (33.75 per
kg).

The letter by the PFMA chairman Abdul Jabbar has said that the government had increased the support price of wheat, for the 2011-12 crop, to Rs1,050 per 40kg from Rs950.

The official procuring agencies and the open market traders were buying grain from growers at Rs1,050 per 40kg or 26.25 per kg. Previously, the mills were buying wheat at Rs23.75 per kg and selling flour at Rs28.25. Now, they are
buying grain at Rs26.25 per kg and want to sell flour at Rs32.5. Apparently they want to increase their margin from Rs4.5 per kg to Rs6.25 per kg.

Abdul Jabbar said the association was demanding an ex-mill price of Rs625 for the past many months, but when the government has stopped selling wheat to flour mills and they were purchasing it from the open market, the price of
the 20 kg bag of flour will be Rs650 instead of Rs565 and its retail price will be Rs675. The association maintained that the government has not increased the flour price in the last two years, while the prices of electricity and diesel have increased manyfold
during this period.

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Posted by Wajahat Javed on May 19 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry