LAHORE: The Punjab government decision of delaying release of wheat quota to the flour mills has resulted in surge in the flour (Atta) prices in the open market.
A bag of 20 kg wheat flour has gone up by Rs 20 to take its to net price to Rs 1250 against official rates of Rs 860.
On the context of increase in wheat flour prices, Nanbahi association had increased the price of a loof (Roti) and nan by Rs 2 each.
The Nanbhai association office bearers had held a press conference last week here to declare that the increase in loof and nan rates was inevitable due to quick surge in wheat flour prices.
Usually ,Punjab government starts release of wheat quota to the flour mills in mid of August every year when the commodity stocks in the open market starts shrinking and its prices start increasing disproportionately.
But this year, Punjab government has so for not started to issue wheat quota to the flour mills.
The Punjab government has 4 milion tons wheat stock which is enough to meet quota requirement of the flour mills till start of wheat harvesting next year in April.
The Punjab government releases around 0.6 million tons wheat to the mills per month.
Talking to NEWSMAN by phone on Sunday, Mian Riaz, former chairman Pakistan Flour Mills Association (PFMA) , said the delay in release of quota has created panic in the market and its subsequently pushing flour prices up in the open market. He said PFMA delegation had called on Secretary Food Punjab Mr Shaheryar a week ago and requested him to start release of wheat quota to the flour mills to maintain flour prices at a reasonable level. According to Mian Riaz , Mr Shaheryar promised to release wheat quota to the mills on priority basis, but practically quota release is yet to start.
Pakistan had harvested around 27 million tons of wheat last year which was almost 5 million tons more than 2019-20. But right from the middle of the harvesting season flour prices started to go up. A bag of 20 kg of wheat flour has gone up to Rs 1250 in the open market. The upward trend may continue in coming weeks if the Punjab government further delayed release of wheat quota to the flour mills.