Punjab government stops provision of subsidised wheat to flourmills

08 Sep, 2010

The Punjab government has stopped provision of subsidised wheat to flour mills in the province under 'Ramzan Package' due to which price of a 20-kilogram flour bag might reach to Rs 600 per bag, claimed Chairman Pakistan Flour Mills Association (PFMA-Punjab) Liaquat Ali Khan.
In a statement issued here on Tuesday, Liaquat said through out the month of Ramzan 20-kilogram flour bag remained available at Rs 425 per bag in retail market, while 10-kilogram bag was available to the consumers at Rs 200 per bag. However, now after the stoppage of wheat under this package, flourmills would buy wheat from the open market and provide flour to the market. This might increase the 20-kilogram bag price to Rs 600 per bag, Liaquat claimed.
Liaquat Ali Khan said that flour bag price was determined keeping in view the wheat price, electricity tariff and one percent turn over tax which is recently levied by the Federal government. He claimed that prices of wheat had increased due to recent flood, which would also directly make an impact on the flour price.
However, an official of the Punjab Food Department said that although the wheat supplies under Ramzan package had been stopped for open market, but flour would remain available to the consumers on same subdized rates in Ramzan bazaars.
He also stated that the department would release wheat to the mills at Rs 1000 per maund for the open market. He said that the flour bag would be available at Rs 560 (ex-mill), which was the price before start of Ramzan. He said that the government would strictly ensure that the flour bag would be available to the consumer on this price.

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