LAHORE: The food department has started the release of wheat to flour mills across the province after the provincial cabinet gave its nod.

Wheat from the department’s stores is usually released to the mills by the end of September each year and until then the millers use their own stock they procur at the time of harvest.

But, as the government had barred the millers from buying wheat from the growers this season, they were forced to get the grain for grinding from the open market where unlike in previous years, the price of wheat was rising each day.

Consequently, for the first time in history, flour prices went up right when the new crop hit the market, leading to unrest among consumers.

To make the flour market stable, the government intervened and offered the millers its wheat stock at official controlled rates earlier than usual, but only to the units located in urban centres of the province.

The offer was rejected by the millers and they demanded that the wheat be given to all units, but as per their grinding capacity.

By this time, the price of a 20-kilo flour bag went up from Rs805 in April to Rs1,055 in June in accordance with the wheat price in the open market that increased from Rs1,400 to Rs2,100 per 40kg.

Compelled by the pressure, the cabinet approved a new summary wherein wheat was offered to all the flour mills in the province at official rate of Rs1,475 per 40kg.

Immediately after approval of the summary, the food department requested the millers to get wheat by depositing the required money.

The Punjab chapter of the Pakistan Flour Mills Association said now they will sell 20kg flour bags that will be available in the open market at Rs860 per bag from Wednesday (today).

Published in Dawn, July 8th, 2020