The Flour Dealers Association (FDA) has halted supply of the 10 kgs of subsidised flour bag over an inadequate profit margin, leading to shortage in the market.
Grocery stores across the city have run out of the 10 kgs option, with only the 15 kgs bag available to consumers. Flour mills are selling the latter at Rs1,050, ex-mill rate. The bag is supplied to retailers at Rs1,080 and the consumers avail it at Rs1,100.
Meanwhile, FDA President Zahoor Bhatti told The Express Tribune that flour mills supply 10kgs flour bags to dealers at Rs540, and an additional Rs2 per bag is charged for loading, making the total Rs542.
He said the government has directed them to supply 10 kgs bags to retailers at Rs550. He added that flour mills should supply flour to dealers at Rs542 per bag, including the transportation and loading cost, making their profit margin at least Rs10. He further added that the bag should be sold at Rs570 in the market.
Bhatti said flour mills supply 15kg flour bags in abundance, therefore, the 10 kilo bag has become scarce in the market. He said that dealers would not supply 10kg bags until they are incentivised with a Rs10 profit.
Subsequently, the Punjab Food and Flour Mills Association will hold an important meeting on Friday (tomorrow) to discuss the supply of subsidised wheat. They are of the view that they should be supplied subsidised wheat from local sources, instead of other districts.
Published in The Express Tribune, November 18th, 2021.
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