Two grain mills halt work [Archives:2006/988/Local News]
SANA'A, Oct. 7 ) Two of four grain mills – Al-Rowaishan and Red Sea Mills – have halted work under the pretext of being unable to afford losses resulting from sudden price increases, Trade and Industry Ministry sources reported to media. “Employees of the two mills complained that they received government orders to sell flour at the previous prices.”
The sources added that Al-Rowaishan Mill in Aden governorate's Mua'ala city has ceased production since Ramadan began. It previously produced 600-800 tons of flour daily. Other sources closer to the mill mentioned that production halted because the mill's electrical generator caught fire.
Hodeidah's Red Sea Mill, which produced 900-1,000 tons daily, has ceased operations for more than a month due to personal disputes. Local sources in Hodeidah said the mill was handed over to a wheat importer three months ago, but production lasted only a month and a half.
According to reliable sources, Suwame Al-Ghelal Mills, owned by Hayel Sa'eed Group, continues producing 2,000 tons daily, whereas Al-Habbari Mill has reduced its daily production, estimated between 400-500 tons, by half since Ramadan began.
These sources indicated that the mills which halted production had been meeting 40 percent of the Yemeni population's demand. They added that a government meeting with traders last Sunday agreed that traders must maintain price stability and resume production in their mills. The agreement priced U.S. wheat at YR 2,200 per bag at the port – a YR 100 increase – while flour prices were set at YR 2,630 per bag, a YR 150 increase.
Trade sources confirmed to Al-Nida newspaper that if the agreement regarding the halted mills resuming production is applied, they may resume production two months from now. They pointed out that importing wheat into Yemeni harbors takes 25 days, which means wheat and flour prices are expected to continue skyrocketing until the halted mills resume their production.
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