AP flour mills body seeks govt intervention

Faced with insufficient wheat availability in the open market, power cuts and a 35-per cent increase in prices in just one month, the Roller Flour Mills Association of Andhra Pradesh has proposed an action plan for the government. The association represents 37 flour mills in the state.

The proposal includes immediate release of two million tonne wheat for bulk consumers, banning export from the open market, and a proper long-term policy to avoid price rise and scarcity, according to Raj Kumar Asati, president of the Association.

The Food Corporation of India (FCI) has a stock of 56.78 million tonne wheat, including additional purchase of 37.48 million this year, which is more than 50 per cent of the country's total production. “This huge stock has created scarcity in the open market and has resulted in rising wheat prices,” he said.

 

Wheat prices in Andhra Pradesh have increased 35 per cent in just one month to Rs 17 (in July) from Rs 13 a kg in June this year, and it was expected that the price might go up in the coming months, Asati said. Other factors adding to the woes include inadequate government policy that allows top traders to export wheat from the open market and lack of storage space, he said.

According to the association, the current wheat requirement for the state is 90,000-100,000 tonne per month, while the state had been allocated only 21,000 tonne for three months to be sold up to September 2012. Karnataka, on the other hand, had been allocated 230,000 tonne for the same period.

“AP is also losing out to neighbouring states, including Karnataka, in terms of price. In Karnataka, the price of maida is Rs 18 a kg, whereas it is Rs 22 in AP,” he said.