Flour shortage looms as mills go on strike

Flour shortage

Karachi, July 11, 2024: The Atta Chakki Association has announced its support for a strike called by flour mill owners, leading to a shortage of flour supply in Karachi and Hyderabad.

Following the strike call, the Atta Chakki Association ceased wheat grinding, resulting in the closure of ‘chakkis’ in Karachi and Hyderabad.

As a consequence of the strike, tons of flour could not be delivered to restaurants in both cities. The flour mill owners are protesting against the government’s imposition of withholding tax.

Flour mill owners declared a strike on July 11 in protest against the newly imposed 2.5 percent withholding tax in the budget for 2024-25.

Citing challenges from rising electricity bills, they emphasized that the additional tax would exacerbate their operational difficulties.

Demanding the government revoke the tax decision, the mill owners warned of a nationwide strike if their demands were not met.

Chairman of the association, Aamir Abdullah, cautioned that failure to withdraw the tax could lead to widespread mill closures, impacting consumers and retailers due to inevitable price increases.

The association projected a potential Rs 50 hike in the price of a 10kg flour bag, and an increase of Rs 7 per kilogram for fine flour. Other wheat products were also expected to see substantial price rises, potentially pushing the price of fine flour to Rs 460 per sack.

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