Price hike feared as Punjab suspends wheat supply to flourmills

By: News Desk      Published: 11:14 AM, 1 May, 2020
Price hike feared as Punjab suspends wheat supply to flourmills

The Punjab Food Department suspended the supply of wheat from government godowns to flourmills in four cities of Punjab, reported 24NewsHD TV channel on Friday.

The move is a result of ending the government quota for the flourmills of these cities, which will now buy wheat from open market. The mills in other 33 districts of Punjab are already buying wheat from private sources.

These flourmills were getting 10,000 tonnes of wheat on the intervention of Food Minister Aleem Khan on preferential basis.

The per maund (40-kg) price of wheat in open market is Rs1,440 to Rs1,460, which means the flourmills are ready to increase the flour rate.

The official rate of 20-kg flour bag produced through government-supplied wheat is fixed at Rs807.

The flour mills have already decided to increase the per bag price by Rs13 after the rate of 40-kg of wheat issued by the government was raised to Rs1,400. However, the Food Department will issue a notification about the price increase.

That’ why the flour mills buying wheat from open market want to increase the price, after which the rate of 20-kg flour bag will be enhanced by Rs15 to Rs20.

Sources, however, say the decision on the issue would be taken by the flour mills association.