Steps to reduce food prices: Flour to be sold at Rs11.5 per kg: Aziz
By Ihtasham ul Haque
ISLAMABAD, June 9: The government on Thursday announced that wheat flour would be sold at Rs11.50 per kg at all utility stores in the country as a first step in its plan to stabilize and reduce prices of five essential food items.
“We have decided to take necessary administrative and financial measures to ensure reduction in prices, especially those of five daily-use food items,” Prime Minister Shaukat Aziz told a news conference after presiding over a meeting held to consider steps to stem the price hike.
He said the Utility Stores Corporation had been directed to arrange vans for selling the commodity at reduced prices in far-flung areas.
The government, he said, had sufficient stocks of wheat which was now being supplied to mills so that people could get flour on the reduced price.
“I have also directed the provinces to release their wheat stocks to ensure that hoarders do not sell wheat and atta on higher rates,” he said.
The meeting, he said, had decided to allow import of food items to ensure stabilization in prices. “After sugar, other items, like meat can also be imported duty free and this is how we can deal with the issue of unnecessary price hike, especially those of essential food items”.
The prime minister admitted that prices of food items had gone up after the announcement of the budget for 2005-06.
“But we would deal with the issue with all sincerity and since we have with us available buffer stocks of wheat, we would certainly ensure even to further reduce the prices of atta at a later stage.
“...I would also tell you that we are finalizing a greater agriculture package to promote certain effective public and private partnership to ensure reduction in prices, especially those relating to agriculture,” he said.
The weak agriculture business and processing would be strengthened by financing the private sector, he said, adding that the food and agriculture ministry would soon announce a comprehensive package to launch the public-private partnership.
Mr Aziz said that the diary industry was being revamped so that people could get milk, butter and related items at reasonable rates.
“We plan to set up 100 model farms under public-private partnership for diary production for which the government would extend incentives to import duty-free equipment.”
He said there was a need to narrow the gap between demand and supply to ensure stability in the prices.
He said financial and technical assistance would be extended to the diary industry with a view to promoting investment in it.
He said many foreign companies had shown interest in setting up stores under partnership to provide daily food items on reduced rates.
“Initially, 25-30 such stores are being opened in the country,” he said, adding that these stores would be called ‘wholesale stores’.
The prime minister stressed the need for breaking the back of hoarders and discouraging cartels to check prices. He said a team of experts would accompany President Gen Pervez Musharraf during his visit to Australia and New Zealand aimed at assessing possibility of greater cooperation in the field of agriculture.
Asked about rumours of his resignation that led to the stock market crash on Wednesday, the prime minister said an inquiry had been ordered to probe the matter. He regretted that vested interests had made billions by spreading rumours.
“These rumours created a gap of Rs1.16 billion in the stock market which went down by some 460 points earlier in the day but started recovering when rumours proved wrong,” he said.
In reply to a question, Mr Aziz said the 6th National Finance Commission award was being finalized with active involvement of all the provinces.
