Wheat supply to K-P flour mills ‘boosted’
Earlier the LTU Islamabad sent show cause notices to two flour mills for non-deduction of withholding taxes, which created ripples among millers, who consequently threatened to go on strike ahead of Ramazan and to increase flour price by Rs5 per kg. PHOTO: FILE
Khyber-Pakhtunkhwa (K-P) Food Minister Atif Khan has said daily release of wheat has been increased to local flour mills to help stabilize the prices as there is no wheat shortage in the province.
He observed that six lakh tons of wheat is currently in provincial stocks.
Addressing a press conference about the flour crisis, Atif said that the Sindh government increased the support price of wheat to Rs4,000 per 40 kilogram which resulted in the flour crisis across the country.
He said that due to the non-release of funds by the federal government, K-P has stopped payments under Insaf Food to one million families. Each family is eligible to Rs2,100 per month food support under the program.
“There will be a complete ban on wheat and flour supply to Afghanistan till the crisis ends,” he informed reporters.
He was accompanied by officers of the food department during the press conference.
“Our annual demand is five million tons. The province produces 1.3 million tons of wheat while the provincial government procures 1.2 million tons of the grain each year. The rest of the demand is met by supplies from Punjab in the shape of wheat or flour,” he noted, adding that the province has sufficient stock but cheap flour is for the poor only.
The minister claimed that the only problem was of prices and it was a problem not for flour but across the board.
“Last year wheat support price was Rs2,200 per 40 kilo and this year government has fixed the price at Rs3,100 but the Sindh government further increased it to Rs4,000 suddenly, encouraging hoarders,” said Atif, adding that provincial government was providing a 20-kg bag at Rs1,300 and due to great demand problems arose.
“Each year K-P spends Rs35 billion on wheat subsidy. The high level meeting chaired by Chief Minister Mahmood Khan has decided to increase the wheat supply to flour mills from 5,000 tons per day to 6,500 tons per day in order to overcome the crisis,” he said.
The minister claimed that wheat was being supplied to Afghanistan by World Food Program and it has been purchased from PASCO.
“The chief minister has directed the authorities to stop supply of wheat to Afghanistan till the end of the current flour crisis in the province,” he disclosed, adding that strict action would be taken against those flour dealers who are involved in overpricing.
The minister said that an app has been developed for flour dealers who would enter their data in the app otherwise they would not be issued with flour and their dealership would be terminated.
Atif criticized a PML-N MPA for entering wheat gowdowns by force and said that the prime minister should announce a subsidy in order to contain the situation across the country.
“No province could control inflation as it is directly linked with the dollar exchange rate ,” he shared, saying that if the wheat supply is doubled to flour mills then the government will have to spend Rs70 billion which is extra financial burden.
Published in The Express Tribune, January 11th, 2023.