The Pakistan Flourmills Association (Punjab branch) has increased the flour prices by Rs 20 per 20-kg bag (ex-mill) because of the surge in the wheat prices in open market and the increase in the oil and gas prices. The new price of the 20-kg flour bag will be Rs 385 (ex-mill), Rs 390 (dealer) and Rs 400 at retail level. The decision came from millers in a meeting on Tuesday.
Punjab PFMA Chairman Habib-ur-Rehman Leghari told Business Recorder after the meeting that they had written to the Punjab government that because of increase in the wheat prices in the open market, it was impossible for them to continue supplying flour at the rate of Rs 365 per 20-kg (ex-mill).
The Association has urged the government to either issue them a quota from government stocks to maintain the prices or let it increase. He said they had received no response from the government to their communique and on Tuesday in the executive committee meeting it was decided to enhance the prices of the flour in line with the increase in those of wheat.
He said they were supplying flour at the rate of Rs 365 (ex-mill) per 20-kg when they were getting wheat at Rs 625 per 40-kg. "Now the price of wheat in the open market range from Rs 710 to Rs 760 per maund," he added. A statement issued by the PFMA (Punjab) spokesman said the association always tried to ensure availability of cheaper flour.
It claimed that millers had provided flour at the government fixed prices for the past one month after purchasing wheat on higher rates from the open market. Nevertheless, because of increase in electricity, gas and petroleum products and upward trend in the wheat prices in the open market, it had become impossible to sell flour at the government fixed price, he added.