Flour mills at Netaiganj hub in crisis
Sunday, 15 July 2007
NARAYANGANJ, July 14 (UNB): Flour mills at Netaiganj, country's biggest flour-producing hub, are on the verge of coming to a halt following wheat crisis in the wake of its latest price rises.
Sources said importers are not showing interest in wheat import, in spite of high demand, because of its price hike on the international market. The import slump created crisis of the grain in local markets.
"Wheat prices increased by Tk 15 to 30 as per variety this past week against the previous week as per tonne price jumped by US$100 on the international market," said one of the millers to the news agency.
So far, production in a number of mills at Netaiganj has been suspended due to the crisis, leaving hundreds of employees jobless.
Some 60 per cent of the country's demand for this foodstuff is met with the flour produced in Netaiganj mills by employing thousands of workers.
Local mill owners said that now it is imperative to import wheat under government initiative and sell it to the mill owners at fair price "to save the flour industry of the country."
Otherwise, over 100 flour-producing mills will be closed, rendering thousands of employees jobless for an uncertain period, they feared.
The price per tonne of wheat was between US$ 200 and 210 on international market during the time of pervious 4-party alliance government, which shot up to US$ 325 to 330 at present, according to the millers.
Importers sell their wheat to the mill owners of Netaiganj through their commission agents.
Local commission agents said wheat import decreased 60 per cent and at present stock of wheat in the godowns at Netaiganj is very poor with which the mills could be kept operative for only a week.
"It would be difficult to face the crisis if the government doesn't take initiative for wheat import," said the miller.
They said there is demand for 30,000 metric tonnes of wheat per day to run the mills in the area.
But, as the supply is not sufficient, they are being compelled to halt production.
Per kilogram flour sold at Tk 20.05 and fine flour between Tk 20.25 and 21.35 two weeks back, which now stands at Tk 25.66 and Tk 25.70-27 respectively.
Price of a maund of wheat has increased by Tk 90/100 at Netaiganj, the milling businessmen said.
President of Godown (wheat-rice) Owners' Association Jasimuddin Mridha told the agency that the government has already bought 0.1 million metric tonne wheat from Bulk Trading Corporation.
"The market will be stable if the government buys more wheat and sells to mill owners at fair price," he said.
Meanwhile, prices of food items made of flour, including bread, cake, biscuits and sweets, have gone up in markets of the capital city in a chain impact of the flour-price prances.
Sources said importers are not showing interest in wheat import, in spite of high demand, because of its price hike on the international market. The import slump created crisis of the grain in local markets.
"Wheat prices increased by Tk 15 to 30 as per variety this past week against the previous week as per tonne price jumped by US$100 on the international market," said one of the millers to the news agency.
So far, production in a number of mills at Netaiganj has been suspended due to the crisis, leaving hundreds of employees jobless.
Some 60 per cent of the country's demand for this foodstuff is met with the flour produced in Netaiganj mills by employing thousands of workers.
Local mill owners said that now it is imperative to import wheat under government initiative and sell it to the mill owners at fair price "to save the flour industry of the country."
Otherwise, over 100 flour-producing mills will be closed, rendering thousands of employees jobless for an uncertain period, they feared.
The price per tonne of wheat was between US$ 200 and 210 on international market during the time of pervious 4-party alliance government, which shot up to US$ 325 to 330 at present, according to the millers.
Importers sell their wheat to the mill owners of Netaiganj through their commission agents.
Local commission agents said wheat import decreased 60 per cent and at present stock of wheat in the godowns at Netaiganj is very poor with which the mills could be kept operative for only a week.
"It would be difficult to face the crisis if the government doesn't take initiative for wheat import," said the miller.
They said there is demand for 30,000 metric tonnes of wheat per day to run the mills in the area.
But, as the supply is not sufficient, they are being compelled to halt production.
Per kilogram flour sold at Tk 20.05 and fine flour between Tk 20.25 and 21.35 two weeks back, which now stands at Tk 25.66 and Tk 25.70-27 respectively.
Price of a maund of wheat has increased by Tk 90/100 at Netaiganj, the milling businessmen said.
President of Godown (wheat-rice) Owners' Association Jasimuddin Mridha told the agency that the government has already bought 0.1 million metric tonne wheat from Bulk Trading Corporation.
"The market will be stable if the government buys more wheat and sells to mill owners at fair price," he said.
Meanwhile, prices of food items made of flour, including bread, cake, biscuits and sweets, have gone up in markets of the capital city in a chain impact of the flour-price prances.