MARKET DEVELOPMENT
Oil Mills to Close Down From Today
Oil Mills to Close Down From Today
16/03/2015 (The News International) - Pakistan Vanaspati Manufacturers Association (PVMA) has decided to close down their mills from today (Saturday) for indefinite period as the Punjab government started strict implementation of cut in ghee price by Rs15 per kilogram.
Rounds of talks between the PVMA, Punjab Food Minister Bilal Yasin, Secretary Industry Punjab Dawood Muhammad Bareach and other government officials remained inconclusive as the minister, and secretary industry showed their inability to take any decision on it.
Dawood Muhammad Bareach talking to The News confirmed that the talks with PVMA along with Food Minister Bilal Yasin were held Friday. However, he said that no decision was taken by them in the meeting. ‘I am going to brief MPA Rana Sanaullah about the talks with the PVMA who will update it to Chief Minister’, he said, adding that the CM would take any decision about it.
On the other hand, PVMA Spokesperson Ch Waheed talking to The News confirmed that ghee manufacturers in Punjab had decided to shut down their mills from today (Saturday) for indefinite time. ‘No authority can forcefully ask us to run the mills and produce ghee as it is not flour or sugar which is produced by indigenous raw material’, he said, adding that in the past, the Punjab government had forcefully controlled and reduced the prices of sugar and wheat flour.
‘If the ghee mill owner will not open Letter of Credit L/C for import of palm oil, then how the production of ghee is possible’, similarly ‘if an importer did not transport its imported palm oil from Karachi to Lahore for few days or sold it to someone else in Karachi, then how the Punjab government can ensure ghee production’, Waheed said, this message was clearly conveyed to the Punjab government in Friday meetings.
He said the Punjab government Friday forcefully ensured only 10 percent of total supply while 90 percent remained suspended. Now, remaining supply will also suspend from today (Saturday), so the crisis of availability of ghee is going to start from tomorrow (Sunday) onwards if the Punjab government will not revert its decision, Waheed warned.
In the meeting, the PVMA has suggested the government to fix two different prices of ghee. One is for brands and the other for non-brands. Justifying the suggestion, the PVMA has quoted that as the premium buyers who have been buying capacity always pay more, so is the case with ghee and cooking oils.
Ch Waheed setting example by the rulers of the Punjab said that why the Punjab government was not reducing the package milk, as it has the major share in package milk business in the province. The rulers’ milk company has been buying milk from milkmen at Rs50 to 60litre while selling its Rs120 per litre, Waheed said, questioning does it not an exorbitant profiteering by them and other political people in the Punjab. ‘If the Punjab government curtails its milk prices and break cartel of milk business, then it will be at high moral grounds to ask other business to reduce their prices’, he commented.
Another official of the PVMA said that the Association in a meeting had also decided not to bring imported palm oil to Lahore rather to sell it to Sindh and other provinces-based ghee mills. The Association has made this decision principally and now it would not withdraw it, he added.
Waheed said it was a surprise that only Punjab Chief Minister was asking to reduce the price while other three provincial governments were comfortable with the existing ghee prices. If the Punjab CM wanted to close down the ghee mills in the province, then do happily, as the public would take him to task when they would know that it was being openly available in other provinces markets.
The PVMA spokesperson said the ghee manufacturers of the province had recently reduced the price of Ghee by Rs5 to 10 per kg on the request of the Punjab government. Now, instead of giving them honour, the Punjab government had come to screw them, giving free hands to milk industry.
Meanwhile, Punjab Agriculture Minister Dr Farrukh Javed has instructed the Price Control Magistrates of the Province to start crackdown against those not decreasing the prices of ghee and oil as per the new orders.
Addressing a department meeting regarding action against the profiteers Friday, he said due to the substantial decrease in the price of palm oil being used in vegetable ghee and edible oil in international market, more than 18 percent production cost had decreased but the economic benefit could not reach the people due to connivance of profiteers.
Dr Farrukh Javed said the Punjab government issued orders of reducing Rs15 per kg/litre in the prices of ghee and vegetable oil under Section 3 of Price Control and Prevention of Profiteering and Hoarding Act 1977. He warned the profiteers that imprisonment up to three years and a fine Rs100,000 could be imposed on violation.
Rounds of talks between the PVMA, Punjab Food Minister Bilal Yasin, Secretary Industry Punjab Dawood Muhammad Bareach and other government officials remained inconclusive as the minister, and secretary industry showed their inability to take any decision on it.
Dawood Muhammad Bareach talking to The News confirmed that the talks with PVMA along with Food Minister Bilal Yasin were held Friday. However, he said that no decision was taken by them in the meeting. ‘I am going to brief MPA Rana Sanaullah about the talks with the PVMA who will update it to Chief Minister’, he said, adding that the CM would take any decision about it.
On the other hand, PVMA Spokesperson Ch Waheed talking to The News confirmed that ghee manufacturers in Punjab had decided to shut down their mills from today (Saturday) for indefinite time. ‘No authority can forcefully ask us to run the mills and produce ghee as it is not flour or sugar which is produced by indigenous raw material’, he said, adding that in the past, the Punjab government had forcefully controlled and reduced the prices of sugar and wheat flour.
‘If the ghee mill owner will not open Letter of Credit L/C for import of palm oil, then how the production of ghee is possible’, similarly ‘if an importer did not transport its imported palm oil from Karachi to Lahore for few days or sold it to someone else in Karachi, then how the Punjab government can ensure ghee production’, Waheed said, this message was clearly conveyed to the Punjab government in Friday meetings.
He said the Punjab government Friday forcefully ensured only 10 percent of total supply while 90 percent remained suspended. Now, remaining supply will also suspend from today (Saturday), so the crisis of availability of ghee is going to start from tomorrow (Sunday) onwards if the Punjab government will not revert its decision, Waheed warned.
In the meeting, the PVMA has suggested the government to fix two different prices of ghee. One is for brands and the other for non-brands. Justifying the suggestion, the PVMA has quoted that as the premium buyers who have been buying capacity always pay more, so is the case with ghee and cooking oils.
Ch Waheed setting example by the rulers of the Punjab said that why the Punjab government was not reducing the package milk, as it has the major share in package milk business in the province. The rulers’ milk company has been buying milk from milkmen at Rs50 to 60litre while selling its Rs120 per litre, Waheed said, questioning does it not an exorbitant profiteering by them and other political people in the Punjab. ‘If the Punjab government curtails its milk prices and break cartel of milk business, then it will be at high moral grounds to ask other business to reduce their prices’, he commented.
Another official of the PVMA said that the Association in a meeting had also decided not to bring imported palm oil to Lahore rather to sell it to Sindh and other provinces-based ghee mills. The Association has made this decision principally and now it would not withdraw it, he added.
Waheed said it was a surprise that only Punjab Chief Minister was asking to reduce the price while other three provincial governments were comfortable with the existing ghee prices. If the Punjab CM wanted to close down the ghee mills in the province, then do happily, as the public would take him to task when they would know that it was being openly available in other provinces markets.
The PVMA spokesperson said the ghee manufacturers of the province had recently reduced the price of Ghee by Rs5 to 10 per kg on the request of the Punjab government. Now, instead of giving them honour, the Punjab government had come to screw them, giving free hands to milk industry.
Meanwhile, Punjab Agriculture Minister Dr Farrukh Javed has instructed the Price Control Magistrates of the Province to start crackdown against those not decreasing the prices of ghee and oil as per the new orders.
Addressing a department meeting regarding action against the profiteers Friday, he said due to the substantial decrease in the price of palm oil being used in vegetable ghee and edible oil in international market, more than 18 percent production cost had decreased but the economic benefit could not reach the people due to connivance of profiteers.
Dr Farrukh Javed said the Punjab government issued orders of reducing Rs15 per kg/litre in the prices of ghee and vegetable oil under Section 3 of Price Control and Prevention of Profiteering and Hoarding Act 1977. He warned the profiteers that imprisonment up to three years and a fine Rs100,000 could be imposed on violation.