Indian Flour Mill Suppliers Frowns by Thin Margin

Wheat flour in India market keeps a persistent rising trend for several months. Accordingly, wheat flour sold in the market also increased its price. Flour miller suppliers retorted that they were forced by the rising wheat prices and insufficient wheat resource. The Food Corporation of India (FCI) Forces put pressure on flour millers by imposing freight charges on wheat sold in the market.

Insiders said that what FCI did will hence the high price of wheat. It is especially serious in the south parts. A director of roller flour mill in India said that the thin margin of flour mill industry made it inevitable to adjust wheat flour price. The raising wheat price, hence freight fee and taxes added by FCI exacerbate the thin margin of flour mill firms also give a shock to the flour mill suppliers in India.

A manager of KMEC flour miller exporting department stated that although their roller flour mill sold at a close price, sale volume also shrunk 10% compared to the same period in the past years.

 

Steven, director of Bansal Flour Mills Pvt Ltd, Bangalore said that, the allowance of wheat or grain to Karnataka is 9000 tones. It is not enough to match the normal capacities. The demanding of wheat and other grain flour from the southern parts is increasing. The particular boost inside wheat or grain price might have an effect on us horribly.

Most flour millers and final consumers think that FCI should take some effective measure to solve the high price of wheat and other grain, as well as the razor-thin margins in wheat flour processing industry.