Punjab flour millers protest against lower wheat rates for J&K

Roller flour millers in Punjab are protesting against lower reserve price fixed for wheat buying for Jammu and Kashmir under the open market scheme, saying it would lead to inflow of cheap wheat-based products from the neighbouring state and hit their business.
The millers have lodged strong protest with the Union Food and Public Distribution Ministry, demanding the centre to provide level playing field to them in order to sustain their businesses.
As part of its efforts to liquidate surplus stocks and improve supply in open market, Food Corporation of India has decided to dispose of wheat to bulk buyers in Punjab at reserve price of Rs 1,550 a quintal under open market sale scheme (OMSS).

However, for bulk buyers of Jammu and Kashmir, the rate has been fixed at Rs 1,519.60 a quintal, they said.
"It will be very difficult for us to compete with millers of Jammu and Kashmir as they will be selling wheat products like flour, 'maida' at much cheaper rates in Punjab which will render our industry uncompetitive," Punjab Roller Flour Mills Association President Naresh Ghai said today.
He said after adding taxes and cartage, wheat under OMSS will cost buyers in Punjab at a rate of more than Rs 1,650 a quintal.

"It is a clear case of discrimination against us by giving special favour to a particular state," Ghai alleged.

"This decision will definitely affect our industry adversely which is already fighting for survival as this decision is selective in favour to one state and is also against the principle of equality," he claimed.
He said millers in the state are already facing tough competition as cheap wheat based products coming from other states like Uttar Pradesh in significant quantity into Punjab have made a significant dent on their market.
"Wheat in UP, Rajasthan, MP was available at Rs 1,250 per quintal where as in Punjab, wheat was procured at MSP rate. Therefore it is already difficult for us to survive as our input cost is higher," he said.

Millers said out of total 75 mills, 15 mills have already closed down whereas remaining mills are running on 20 per cent capacity utilisation.
Millers during the rabi marketing season 2015-16 even purchased lesser quanity of wheat as compared to what it bought last year. "This year, we have purchased only 2 lakh tonne as against 3.5 lakh tonne bought last year," Ghai said.