KARACHI: Millers have reduced the prices of different varieties of flour by Rs1.50 per kg after arrival of new wheat crop from Sindh but retailers have not reduced their rates.

Sources said the prices were cut after the Competition Commission of Pakistan (CCP) had issued a show-cause notice to the All Pakistan Flour Mills Association (APFMA) in the second week of this month for indulging in uncompetitive practices such as price fixing and sharing commercially sensitive information.

The commission took notice that APFMA and its member undertakings had increased the prices of various categories of wheat/flour and its by-products in 2015 and 2016. The CCP also inspected the premises of APMFA and impounded relevant documents and material.

The CCP noted that the APFMA executive committee was regularly meeting, exchanging commercially sensitive information and strategic data on flour prices and allocation of quantities between 2012 and 2014 and was also facilitating the coordination among its members, thus potentially affecting, preventing, restricting and reducing free competition in the relevant market.

After reduction of Rs1.50 per kg, the price of flour no. 2.5 is Rs1,800 per 50kg and the rate of fine flour and super fine flour (maida) is Rs1,875 per 50kg.

Retailers are charging Rs40-45 per kg for fine flour and Rs50-55 per kg for super fine and chakki flour depending on different localities.

APFMA’s central chairman Chaudhry Ansar Jawed said the recent price cut had nothing to do with CCP enquiry.

The ex-mill price of 10kg flour bag (no. 2.5) was Rs365 while Ashrafi flour’s ex-mill rate of 10kg bag was Rs405.

Retailers have kept the price of 10kg Ashrafi flour unchanged at Rs430-440.

Mr Jawed attributed the price fall to the arrival of new Sindh crop in the last 10 days in the open market resulting in drop in the wheat prices by Rs1.5 per kg which was passed on to the consumers.

Published in Dawn, March 24th, 2018