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Sindh Food Dept denies raising price of wheat to Rs 675 per 100 kg

RECORDER REPORT

KARACHI: The Food Department of Government of Sindh did not increase the price of wheat from Rs 625 to Rs 675 per 100 kg as reported in a section of the Press, a spokesman of the department said on Tuesday.

The spokesman said that the issue price of wheat fixed by the department was Rs 650 per 100 kg without bardana.

There was no such rate of Rs 625 per 100 kg ever prevailing in the province he added.

He, however, clarified that the department was getting imported wheat at Rs 826 per bag of 100 kg from the Federal Government, which was issued to flour mills at Rs 700 per 100 kg bag, (with bardana) and the balance amount was pickedup as subsidy.

In order to effect economy, the department had decided not to purchase new jute bags for coming wheat procurement season. It would retrieve the jute bags of imported wheat, thus making savings of Rs 330.00 million.

He said that it was decided to charge Rs 25 for each used bardana retrieved, while the bag value, prior to this arrangement, was being kept by flour mills. Since used bag price is Rs 25-30 in the open market it is an arrangement which should not add to the ex-mill price of Rs 8.50 per kg promised by former office-bearers of Pakistan Flour Mills Association (Sindh Chapter) and senior representatives.

In the holy month of Ramzan, Rs 650 per 100 kg of wheat was charged from the flour mills, for the benefit of lower tiers of the society, he added.

The following is the tent of contradiction issued by information department, Government of Sindh.

A spokesman of Food Department, Government of Sindh has contradicted a news item appeared in some section of the press stating that the Department has raised the price of wheat from Rs 625 to Rs 675 per 100 kg.

The spokesman stating the factual position said that the issue price of wheat by the department till recently was Rs 650 per 100 kg. without bardana. There was no such price of Rs 625 per 100 kg ever prevailing in the Department, he added.

He however clarified that the department is getting imported wheat at Rs 826 per bag of 100 kg from the Federal Government, which was issued to Flour Mills at Rs 700 per 100 kg bag, (with bardana) and balance amount picked-up as subsidy. In order to have economy, the department had decided not to purchase new jute bags for coming wheat procurement season and retrieve the jute bags of imported wheat, thus anticipated savings of Rs 330.00 million shall be made. He further opined that it was decided to charge Rs 25 for each used bardana retrieved, while a bag's value was prior to this arrangement, was being kept by flour mills. Since used bag price is Rs 25-30 in the open market, the Department thought it better to pay Rs 25 per used bag to the flour mills. It is an arrangement which should not add to ex-mill price of Rs 8.50 per kg. promised by former office bearers of Pakistan Flour Mills Association (Sindh Chapter) and senior representatives. However, in the holy month of Ramazan, Rs 650 per 100 kg of wheat was charged from the flour mills, for the betterment of lower tiers of the society, he added.