LAHORE, Aug 29: The Pakistan Flour Mills Association (PFMA) has split on the issue of receiving official wheat, which the food department started disbursing on Friday, with some of them agreeing to pick the wheat and others refusing to lift citing commercial reasons.

Department officials claimed that over 60 per cent of mills had agreed to their formula of receiving wheat at the official rate of Rs560 per 40kg and supply flour at Rs290 per 20kg. The association, however, said `dissident mills’ were not more than 10 per cent.

The association, represented by Habibur Rehman Leghari, held negotiations with food department officials on Thursday night, which broke down when the association refused to get the wheat at Rs560 per 40kg and sell the flour at Rs290 per 20kg.

The association, representing around 640 mills across the province, claimed to have collective power behind its decision of non-cooperation. Their claim, however, was rocked by some 150 mills that deposited money with the government for wheat. The department claims more mills would follow in the next few days, whereas millers think the number would decrease once the millers realise the commercial non-viability of their decision.

Beyond the debate of number game, the consumers seem to be heading for a tough time, especially in the next 10 days, when the salaried class goes for buying flour and put additional pressure on demand and price of flour.

Traditionally, the first week of every month needs some 30 per cent additional supplies because the salaried class goes for full-month grocery shopping. From this Monday, the pressure would be even greater due to the Ramazan factor. With pipelines already dry, because of wheat drainage to other lucrative markets like the NWFP and Afghanistan, the situation will be even precarious. How the department plans to coop with it remains to be seen.

With those mills having over 60 per cent of share in the market such as Data National, Sunny, Ravi and Yadgar flour mills, refusing to cooperate, the task of maintaining flour supply seems to be difficult for the department. Can relatively small millers, which are on board as per claim of the food department, chip in for those who have developed their brand and share over the decades? The department has yet to make its alternative plan public. Speaking at a hurriedly called press conference, Mr Leghari announced the decision of “non-cooperation” with the government because of commercial reasons. “The mills will be suffering huge losses if they accept the official release-price formulae.” He promised cooperation with the government if it reconsidered their pricing formula and created fiscal space for millers, adding that closing down mills would be the last option for any owner.