Flour mills end strike, raise price

KARACHI: The flour millers strike in the city was called off on Sunday night after the government accommodated the demand to sell flour at a price that was considered feasible by the producers.

After the agreement, the flour millers resumed production and raised the flour prices from Monday morning.

Earlier on the intervention of Sindh Chief Minister Syed Qaim Ali Shah, a meeting between Commissioner Karachi Shoaib Ahmed Siddiqui and flour millers was held on Sunday to end the strike. Flour millers had suspended the production of flour from August 1.

The meeting was chaired by secretary food and was attended by secretary labour, Deputy Commissioners and officer bearers of Pakistan Flour Millers Association (PFMA), Sindh Zone.

While the consumers were already paying high price for different flour varieties, the new rate of chakki flour fixed by the millers is Rs2,050 per 50 kg as compared to Rs1,990. The new price of fine and super fine flour is tagged at Rs2,150 as compared to Rs2,100. Its impact is expected to be visible at the retail level before Eid.

The millers are said to be cashing in on the spike in demand at the start of the month due to the pre-Eid buying of essential items.

While justifying the price increase, Chairman PFMA Sindh Zone Chaudhry Ansar Jawed blamed the rise in flour price on the rising price of wheat that surged to Rs3,575 in the open market from Rs3,550 before August 1.

He said chakki flour price was actually reduced to Rs1,990 from 2,025 per 50 kg bag but the millers could not sustain the persistent hike in wheat prices in open market.

However, many retailers did not wait for supply shortages and started charging higher prices of flour bag on the news of the strike that halted production in 80 flour mills of the city from August 1. Some were still charging Rs450 per 10 kg bag which was priced Rs430-440 prior to strike.

The conduct of the Commissioner Karachi generate doubts as he insisted not to allow the hike earlier but agreed to allow the increase after chief minister146s intervention. Sources privy to the meeting told Dawn that he accepted that his position on flour price was misplaced and it was a mistake to force millers to sell flour at Rs33 per kg based on an old notification which was withdrawn by the Sindh government on July 11, 2013 after the arrival of the new wheat crop 2013.