25 September 2004	Saturday	09 Shaban 1425

KARACHI, Sept 24: The Sindh Government has again warned flour millers of stern action if they do not sell wheat flour at an ex-mill price of Rs12.50 per kg.

The provincial government is also joining hands with the city government to ensure that the retailers sell wheat flour at a maximum price of Rs13 per kg. But the city government officials say retail prices of flour should better be kept at a level higher by Re1 per kg, meaning that the maximum permissible retail price of wheat flour should be Rs13.50 per kg.

Sindh Food Minister Arif Mustafa Jatoi warned all the millers at a meeting held at his office on Friday to bring down the ex-mill price of wheat flour to Rs12.50 per kg or face action which may include cancellation of their licences and stoppage of supply of subsidized wheat.

Currently, the ex-mill price of wheat flour ranges between Rs12.75 and Rs13.25 per kg. "The minister categorically said that the government subsidy on wheat must be passed on to the public in the shape of lower prices of wheat flour," Sindh Food Director Dr. Tanveer Qureshi told Dawn after the meeting.

"We have assured the minister to sell flour at a maximum ex-mill price of Rs12.50 per kg," confirmed flour miller Mr. Khalid Masood who heads the Sindh chapter of Pakistan Flour Mills Association. But he said, the millers have asked the food department to raise supply of subsidized wheat in October.

Dr. Qureshi confirmed this statement saying that the department would give the millers more of subsidized wheat in October to help them keep their ex-mill price at Rs12.50 per kg."

Some 70 plus Karachi-based millers are currently getting 40,000 tonnes of wheat from the food department at a subsidized rate of Rs10 per kg that also includes the cost of packaging.

The millers are hoping to get at least 60,000 tonnes in October but there is no official comment on the issue. The millers say they would not be able to sell wheat flour at Rs12.50 if they do not get more wheat from the department but in Friday's meeting with the food minister they did not quantify their additional demand.

They simply said when they get lesser-then-required wheat from the department, they have to buy more from the open market at a higher rate. The provincial government is also in touch with the city government to ensure that the retail price of wheat flour also does not rise beyond Rs13 per kg.

But a senior city government official said retail price of flour should be better fixed at Rs13.50 per kg because "it is not practical" to expect the retailers to earn a thin margin of only 50 paisa per kg. But DCO Mir Hussain Ali said that he would ensure that shopkeepers do not sell wheat flour beyond whatever retail price is fixed by the local government.