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Flour Mills creating Artificial crisis

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Flour mills shut down across the country
By Mobin Nasir
July 09, 2010

Flour mill owners from all over Pakistan have shut down operations to protest against the restrictions imposed on the free movement of wheat and flour within the country.

Chairman of the All Pakistan Flour Mill Owners Association (APFMA), Iqbal Daud, told The Express Tribune that consignments of wheat and flour being transported from Punjab were being stopped by provincial authorities in Sindh despite the federal government’s assurances of free movement across Pakistan.

He added that the government had issued a notification fifteen days back permitting the export of wheat to Afghanistan. However, according to him, “Political agents in Khyber-Pakhtunkhwa and the Frontier Constabulary in Balochistan were creating hurdles for exporters.”

The chairman also labelled the recently introduced turnover tax of 1 per cent as ‘excessive’. He warned that flour mills would not resume production until the government acceded to their demands of permitting the unhindered movement of goods.

Meanwhile, the Sindh Food Department rejected allegations of obstructing the transportation of wheat in the province.

Munir Jalbani, Press Secretary of the Sindh Food and Agriculture Ministry, explained, “The Chief Minister imposed section 144 of the Code of Criminal Procedure on June 9, affecting transport of goods through Sindh. This order was not issued by Sindh Food Department”.

Jalbani emphasised that the government had always followed an open door policy towards mill owners when it came to addressing reasonable grievances. “We have to work in the national interest and we will not concede to any demands that appease a select lobby,” he commented on the association’s ultimatum.

He asserted that there was enough wheat in Sindh to meet local demand, pointing out that the Sindh Food Department had purchased 1.7 million tons of wheat from farmers at a support price of Rs. 2,525 per 100 kilogramme bag. He was of the opinion that mill owners only wanted to export wheat to earn abnormal profits, brushing aside accusations that restrictions from the Sindh government were simply ‘pressure tactics’.

He said that if the millers really wanted to transport wheat to Balochistan, they could easily send it by rail. “Doesn’t it cost a lot more to transport wheat by road to Karachi via Ghotki and Sukkur before sending it to Balochistan?” questioned Jalbani.

All provincial chapters of the APFMA have supported the strike call. Chairman of the Balochistan office, Abdul Wahid, has stressed that all flour mills in the province would remain closed until further directives from the representatives of the association.

Analysts pointed out that the demand for wheat usually increased during the month of Ramadan. Millers have warned that the strike may be prolonged indefinitely if their demands are not met by the government. Experts say that if issues between government and millers are not resolved soon, production of the staple food items will be affected. This could translate into shortages of flour despite a record wheat harvest.

Published in The Express Tribune, July 9th, 2010

Flour millers split over strike call

By Mobin Nasir
July 11, 2010

KARACHI: The Sindh government has dismissed claims made by the All Pakistan Flour Mills Association (APFMA) that mills were observing a country-wide strike.

Sindh Food and Agriculture Minister Nadir Magsi, while talking to The Express Tribune, said “there is no strike of flour mills in Sindh.”

“Certain political elements are exaggerating issues and trying to give an impression that the Sindh government has created hurdles in the way of flour millers,” he added.

The minister highlighted that millers in Sindh would testify that the government has fully cooperated with them.

He also stressed that the Sindh Food Department had not imposed any restrictions on the movement of flour or wheat between provinces.

Meanwhile, the Chairman of APFMA, Iqbal Daud, declared that the country-wide strike would continue till next week.

Reiterating the grievances of mill owners, he demanded that the transport of staple food items across provincial borders should not be obstructed and exports to Afghanistan should be allowed in line with directives of the federal government.

The APFMA had declared a country-wide halt to flour mill operations three days ago to protest against hindrances in the way of free movement of goods within the country.

However, Chairman of the Karachi Retail Grocers Association, Fareed Qureshi, told The Express Tribune that supply of flour had not been affected and shops had received deliveries from various flour mills over the past two days.

“Despite their support for the strike, many mills have been operating non-stop over the past two days. We will also resume production on Monday regardless of whether APFMA calls off the strike or not,” said a flour mill owner and former office-bearer of APFMA on condition of anonymity from Karachi.

Official spokesperson for the Sindh Food and Agriculture Department, Munir Jalbani, urged millers to display national spirit instead of thinking about personal gains.

Jalbani explained that the Sindh government had borrowed more than Rs35 billion from banks and other institutions to purchase wheat at the support price.

“If mill owners start buying wheat from other sources, what are we going to do with all the wheat that the government has purchased?” questioned Jalbani.

He added that negotiations would be welcome but cautioned that first priority would be given to public interest.

Sources close to APFMA revealed that several mill owners held reservations about the strike call.

While the association’s chairman has asserted that 1,060 flour mills were currently closed, it appears as if cracks may be emerging within the organisation as many mills have resumed production despite their public support for the strike.

Published in The Express Tribune, July 11th, 2010.
 
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This will surely increase the prices of Flour and associated products.
 
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All the flour should be tracked to curb smugglers from moving items to Gulf , Afghanistan - India for greater profits

All the flour should be purchased by Gov of Pakistan and then , from there it should be sent to depots which distribute it @ city level after taxes are collected from vendors - in local cities

:pakistan:

Mills that are striking their permits should be revoked for interfering with law -
 
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All the flour should be purchased by Gov of Pakistan and then , from there it should be sent to depots which distribute it @ city level after taxes are collected from vendors - in local cities

Decide whether you're a free market capitalist or a socialist.
 
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It has to be control distribution , the business owners want the free flow so they can fill a truck load of wheat and ship it out to Middle east for profits

They probbly make 2-3 times the profit if they moved the food outside of Pakistan

Gov control limits their ability to move the food items to 3rd country and to final destinations.

Flour -> Goes to mill -> X amount is produced -> and then distributed evenly in country

NOT ...

Flour -> Goes to mill -> 10% is distributed in country , 20% is stocked up, 40% is smuggled out -> 10% is horded to Afghanistan - 10% -> 10% is released when gov pressure increses .......

and obviously no purchasing of items from outside of country if our analyst state we produce enough to feed the world that we need to import these in


Mill OWNERS have no right to control the distribution - their job should be to take raw wheat and reifine it and crush it and create flour ... and then it goes to distributors who track the KG of flour being produced...

Only when local demand is met should any item be release to forigne countries
 
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Then become a communist country like china where everything is controlled by the govt.
 
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Then become a communist country like china where everything is controlled by the govt.

Even in democratic countries when oil prices are hicked up , gov takes action to control and regulate prices

For Pakistan we need this currupt business community running
Mills to keep food items in Pakistan for local public first and then worry about exporting out to other nations

Since our federal gov can't stop smugglers then yes they need to hold mill owners accountable

If they get x amout of wheat raw they should produce y amount of flour ....and we can calculate just how much is produced in country
 
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Even in America food prices are highly regulated through indirect and direct intervention.
 
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These floor mill owners are sucking on blood of ordinary pakistani citizen, we should investigate if any minster or officials are invovled in this, Some thing needs to be done this is too much.
 
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Pakistan probbly produces enough food to feed 30% of earth's population , but here our mills are saying we can't produce need to import items from India - to meet demand ...

none sene then stop the smuggling out of food to middle east and other countries feed local population first and worry about the

BIO fuel companies later - ppl should come first not BIO fuel or other smuggling stuff

Ever where DISTRIBUTORS and import export channels are seperated by different companies -

Here the mill owners want to control where they ship the goods from pakistan and then what to bring in country from out side double the profit
 
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Pakistan probbly produces enough food to feed 30% of earth's population , but here our mills are saying we can't produce need to import items from India - to meet demand ...

none sene then stop the smuggling out of food to middle east and other countries feed local population first and worry about the

BIO fuel companies later - ppl should come first not BIO fuel or other smuggling stuff

Ever where DISTRIBUTORS and import export channels are seperated by different companies -

Here the mill owners want to control where they ship the goods from pakistan and then what to bring in country from out side double the profit
Business people want quick bucks...they don't care about national interests, its universal and not confined to Pak alone.. see the amount of Junk imported from China to INDIA,most are unwanted, unsafe toys, which can be easily locally made.
 
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SABSE BADA RUPAIYYA...

what do you expect from businessmen..they will use every trick in the world to earn more profit..mulk jaaye gadhdhe mein...
Govt. has to intervene or, consumption will drop even further...
 
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