SAHIWAL, Aug 5: The Food Department must supply wheat to flour mills at the `issue rate’ (or the official subsidized rate) of Rs 625 per 40kg, say millers.

“How long flour mills can maintain flour supply to consumers at the subsidized rate after buying wheat from the open market at Rs 790 per 40kg. Flour millers are losing Rs75 on each 40 kg flour sale,” says Shaikh Muhammad Sajjad, President, Pakistan Flour Mills Association, Sahiwal district.

He said recent negotiations between the Punjab government and the Pakistan Flour Mills Association failed as the former refused to supply wheat to the flour mills at the government subsidized rate. On the other hand, he said, the government was forcing the mills to sell flour at the subsidized rate of Rs 365 per 20kg.

"Mills are losing Rs75 against each 40 kg flour sale. The reason is we are buying wheat from the open market at Rs 790 per 40 kg," Sajjad said, blaming the Food Department for this mess.

Giving flour distribution details in the district, he said presently 32 flour sales points, fed by nine mills, were operating in Sahiwal where the flour was being sold at the subsidized rate. Besides 23 sales points had been established in the open markets of Sahiwal city, Chichawatni, Iqbalnager, Yousafwla, Harrapa, Ghaziabad, Noor Shah and Kameer.

"All these sales points are under the surveillance of security agencies on a daily basis. This situation won't continue for long as flour mills cannot suffer a loss Rs75 per 40kg bag loss,” Sajjad claimed.

Muhammad Toufeeq, the District Food Controller, confirmed the mills point. "Yes we are not providing wheat to flour mills at the subsidized rate but we are monitoring them to sell flour at subsidized rates".