Flour shortage on cards as mills go on strike

KARACHI: The Atta Chakki Association announced to support a strike call by the flour mill owners, resulting in a shortage of flour supply to Karachi and Hyderabad, ARY News reported.

On the strike call, the Atta Chakki Association stopped grinding wheat, as ‘chakkis’ in Karachi and Hyderabad shut down.

Due to the strike, tonnes of flour could not be supplied to restaurants in both cities. The flour mill owners are protesting against the withholding tax imposed by the government.

The flour mill owners announced a strike on July 11 against the imposition of a 2.5 percent withholding tax in the budget 2024-25

The flour mill owners said that due to increasing electricity bills, they are already facing difficulties in running their business.

“The additional 2.5 percent withholding tax will further ruin our business,” they added.

While demanding the government withdraw its decision to impose the tax, the flour mill owners announced to go on strike on July 11.

The association’s chairman, Aamir Abdullah, warned that if the government does not withdraw the newly imposed tax, a strike may be called, which could include the closure of flour mills across the country.

“The government needs to reconsider and withdraw the tax on wheat products, withholding tax implementation will inevitably drive up prices, affecting consumers and retailers alike,” Abdullah stated.

The association estimated that the price of a 10kg flour bag will increase by Rs 50, with fine flour seeing an increase of Rs 7 per kilogram.

Other wheat products are also expected to see significant price hikes, with fine flour potentially reaching Rs 460 per sack.