Flour millers cut prices again
KARACHI, June 30: The price of flour no.25 have been reduced to Rs1,450 per 50 kg bag, from Rs1,490. A 10-kg bag is now priced at Rs295 as compared to Rs303.
This is the second price cut in the current month. The flour millers on June 8 brought down the rate of flour no.2.5 to Rs1,490 from Rs1,525. Flour millers said that various factors had combined to cause the price reduction mainly low transportation charges on account of cut in diesel prices on June 15.
Besides, they said report that the Punjab government would provide subsidy of Rs4 billion to reduce flour price during Ramazan also forced the millers to speed up clearance of stocks at reduced prices before the holy month.
He said that market is also a buzz with reports that the Sindh government is also considering providing Rs2 billion subsidy in order to provide relief to the consumers during the holy month.
The millers said that the 100-kg wheat bag arriving from Sindh’s producing areas was available at Rs2,580-2,600 for the last few weeks.
They said that there was no change in the rate of fine flour and super fine flour (maida) at Rs1,645 and Rs1,660 per 50 kg, respectively.They added that the millers had adjusted the price of flour downward after there was an increase in chokker rate (wheat bran). Some millers said that its rate had swelled to Rs680 per 34 kg from Rs480 while some others quoted the rate at Rs625 from Rs575.
“Some traders are also exporting wheat bran to Gulf countries for the last 15-20 days,” they added.
They said that wheat as well as flour rate may remain stable till Eidul Fitr.
On the other hand, wheat export improved in May 2012 to 37,294 tons ($11.4 million) as compared to 20,069 tons ($6.2 million) in April 2012 but it was too low if compared to 218,018 tons ($69 million) recorded in May 2011.
Total wheat exports in July-May 2011-12 fell sharply to 403,772 tons ($124 million) as compared to 1,468,825 tons ($487.5 million) in the corresponding period of last fiscal year.
A wheat exporter said after no headway in exporting wheat to Iran under a barter deal, the prospects of Pakistan’s wheat exports were still bleak as Russia, Ukraine and India are offering their wheat at $240-260 per ton (FOB) as compared to
$300-305 per ton of Pakistani wheat price.
He said wheat export was not feasible as the government had already raised the wheat support price to Rs1,050 from Rs950 per 40 kg.
He recalled that a year back the Punjab government had provided a subsidy to push up wheat exports.