About 50 per cent of the roller flour mills are on the verge of closure in Karnataka due to non-availability of wheat.
There are about 55 roller flour mills in Karnataka feeding atta, sooji, wheat bran and resultant atta to bakeries, hotels, biscuit, pizza and noodle makers.
Some of them have annual contract and also supply wheat by-products to major companies like Nestle, Britannia, Parle and retailers like Nilgiris, Trent Star Bazaar etc.
“If the Government does not release wheat in the open market in the next one week, many flour mills will have to close shop,” said M. K. Gopal Krishna, President, Karnataka Roller Flour Mills Association, at a press conference.
Wheat allocation
Karnataka has been allocated 2.34 lakh tonnes for bulk consumers and small private traders of wheat for July-September period.
“Of which our millers during the first-three tenders floated by Food Corporation of India (FCI), Bangalore, in July have tendered the quantity of 1.30 lakh tonnes,” said Krishna.
“The balance 80,687 tonnes needs to be immediately allocated to face the crisis,” he added.
There has been a sudden and abrupt stoppage of tenders in the State for bulk consumers. “The reason given by FCI is that they need fresh instructions from to Union Consumer Affairs Ministry,” said M. K. Dattaraj, Managing Director, Krishna Flour Mills.
“Due to sudden stoppage and non-availability of wheat in the open market, prices have shot up by 30 per cent and the millers are unable to procure wheat at these rates,” he added.
“Bangalore being cosmopolitan with entry of MNC companies, their dependence on bakery and fast food trade high,” said B. S. Bhat, President, Karnataka Wrapped Bread Manufacturers Association.
“In the last few days, prices of wheat flour, sugar, yeast, vegetable fats, packing materials have gone up very steep hurting many bakeries and wrapped bread manufacturers,” he added.
The Karnataka Roller flour Mills Association, in a letter to K. V. Thomas, Union Minister for Consumer Affairs and Food and Public Distribution, said, “We have learnt the quantity available to Karnataka for the last tender in July 2012 is diverted to other States and with the result millers have to face enormous difficulties.”
The association also reminded the Minister that Karnataka during 2010-11 and 2011-12 was the highest consumer of wheat in the country at 65,000 tonnes a month.
The association also welcomed the Central Government’s recent announcement of new OMSS (open market sales) rates for bulk consumers from August 2012 onwards at Rs 1,285 a quintal, plus local taxes. “Even after higher rates announced by the Union Government, our millers are quite willing to quote for higher tender price of more than Rs 1,285 a quintal in the ensuing tenders.”