The government has increased wheat issue price for the mills for 2005-06, from Rs 10,000 to Rs 10,750 per tonne and fixed flour (atta) price (per 20-kg bag) at Rs 250.
The increase is over and above upward revision in issue price on monthly basis under cascading formula. The government introduced cascading formula last year for the release of quota to the mills under which, wheat prices are adjusted every month to absorb storage and handling expenditure.
Sources said the government conveyed to the millers early this month that they have to strictly follow the official price pattern to ensure availability of flour to the consumers at fixed rates from December to April when the rates usually shoot up.
Although the government is in touch with the millers and wants smooth supply of atta to the consumers at fixed rates, the situation is irrelevant for at least Rawalpindi region where flour price is already more than the official rate.
A 20-kg bag of flour is available in the region for Rs 270 and the millers say the rates may further go up in the coming days.
They add that since they bring in wheat from long distance, which costs them more than other areas, and they have no other option but to sell flour at higher prices.
The millers claim that flour prices would have been less in the region if the Punjab Food Department had started issuing wheat quota to them mills.
They normally get wheat quota from the government godowns in August every year to ensure that flour prices do not exceed from a certain limit but this time they are yet to get the quota.
Punjab Flour Mills Association is blaming the provincial food department for increase in flour prices in Rawalpindi. Chairman Haji Ibrahim said that he has conveyed to the Punjab Food Minister Chaudhry Iqbal and secretary food that delay on part of the department in issue of wheat quota was a major reason of continuous surge in flour prices.
He added that both the persons assured him that the Punjab government was going to streamline issue of wheat quota to the mills soon.
The PFMA chairman said, "I have conveyed to the authorities that delay in issue of quota will keep on pushing the flour price up in the open market and subsequently add to the consumers burden."