LAHORE, Sept 29: With the release of wheat to millers having been delayed by a month, the Punjab Food Department might be able to deal with the feared wheat crunch early next year.

The releases, which normally start in early September, will start in the first week of October this year. Around 7,000 tons of wheat are released daily and the Punjab has thus saved around 200,000 tons already.

A summary of the release policy has arrived at the chief minister’s office and may be cleared in a day or two.

However, the food department will still prefer to delay the releases by another week or so to ensure ample stocks in the months to come. Though there is still no pressure in the market for early release, the department also does not want to be left with a huge quantity at the end of the season.

At present, the department has around 2.57 million tons of wheat and hopes to release around 2.37 million tons.

The federal government has already allowed the provinces to start releasing wheat any time after Oct 1.

The release policy, which now awaits CM’s nod, may result in some concessions for the millers who are demanding relief on the cascading price of wheat and the cost of gunny bags.

The food department has been opposing any tinkering with the cascading effect, due to which, the farmers got a better price of wheat this year, according to an official of the department. The private sector bought wheat on the basis of calculation that the price would go up with the passage of time. Withdrawal of the facility at this stage would be tantamount to ditching the private sector, which had made heavy procurement this year.

The government may be able to put up with the pressure of private sector this year and give some relief to millers, but it would certainly drive the private sector out of market next year. On the basis of this promise and other calculations, the department favours the cascading effect. But, the final decision lies with the chief minister, he said.

The summary lying with the chief minister not only lays down a release policy but pricing as well. The chief minister, himself a miller, knows the wheat market inside out. He is aware of the sensitivities of growers and the preferences of millers. These pressures have delayed a policy decision, he added.

Talking about the possibility of relief on gunny bags, he said that the government paid Rs50 per bag and charged millers the same price. If it has to give any relief to millers, it will have to introduce a new subsidy which at present is not possible. So, there could hardly be any relief for millers on this front, he maintained.

The summary also includes the Ramazan Package. This time around the chief minister wanted to provide relief to the general public on the one hand as well as something extra to the destitute on the other. The scheme may be launched through the Utility Stores or special outlets.