March 03, 2008	Monday	Safar 24, 1429

LAHORE, March 2: Millers on Sunday increased the price of a 20kg flour bag by Rs15, as they start charging Rs5 extra on account of hike in electricity rates and Rs10 by withdrawing the price cut enforced upon them by the government, on the pretext that the Punjab bureaucracy failed to meet its commitments.

The increase would mean that 20 kilo bag would be available for Rs290 ex-mill price and retail rate would hit Rs300, instead of Rs285 as was being charged till Saturday.

The millers had reduced the price by Rs10 per 20kg bag in the second week of February in a meeting with the caretaker chief minister.

According to the millers, the government, on its part, had committed to withdraw Rangers from their units and also lift inter-district and inter-provincial ban on movement of flour.

The millers withdrew the decrease last week, because the government neither removed the Rangers nor lifted the ban. But, they were made to defer the decision, pending a meeting with chief minister Ijaz Nisar.

The millers on Sunday said the meeting with the CM was fixed for Friday, which could not take place.

Meanwhile, the federal government increased electricity charges by nine per cent and diesel price by Rs3.50 per litre, both forming 70 per cent of the production charges. Any substantial surge in the prices of both inputs was bound to reflect in flour price, and the increase has been made.

Though the millers could only raise price in consultation with the district coordination office (DCO) concerned, yet the Pakistan Flour Mills Association (PFMA) on Sunday went ahead with the increase unilaterally.

In Sunday bazaars, though a 20 kilo bag was available for Rs275, the bazaar management had put up boards there informing the people that price would increase to Rs300 from next Sunday.

According to the food officials, millers unilaterally cannot do so and the department will call a meeting of the millers on Monday to thrash out the price issue.

“There is some justification for increase in electricity and diesel prices, but it is still to be seen how much addition it can make to the flour price,” an official said.

On withdrawal of Rs10 reduction, he said the millers had agreed to wait for a meeting with the chief minister, with whom they agreed to reduce the price, and they should not have increased the price without discussing it with him.

Khaleeq Arshad of PFMA, however, said: “It is not only fuel and electricity issues, there are other contributing factors as well.”

He said the food department had recently reduced wheat supplies to millers, thus increasing their overhead charges.

“With more wheat supplies, production charges come down. But, with wheat supply reduced to 37 bags per body, these charges have also gone up. All these factors have skewed the flour market against the common man. If all stakeholders do not stick to their promises, it will be unfair to expect the millers alone to honour their word,” Arshad said. —Ahmad Fraz Khan