Wheat, flour prices to go up in Punjab
Provincial ministers believe the market is stable, the move would counter smuggling
Punjab industries secretary was providing unreliable data to back a proposal to keep the support price of wheat at Rs1,300 per maund (40kg), as he was unable to support his claim that the prices of roti and nan would rise by Rs1 and Rs2 if the rates were raised. PHOTO: REUTERS
LAHORE:
A high-level meeting at the Prime Minister House on Saturday agreed to increase the official rates for wheat in Punjab to Rs1,375 per 40kg bag of wheat and Rs808 per 20kg of flour.
The Punjab cabinet is expected to formally approve the new prices next week, while the government will resume releasing wheat to flour mills at the new price after the Eid holidays.
Sources said that during the meeting, the Punjab industries secretary was providing unreliable data to back a proposal to keep the support price of wheat at Rs1,300 per maund (40kg), as he was unable to support his claim that the prices of roti and nan would rise by Rs1 and Rs2 if the rates were raised.
Wheat production estimated at 25.16 million tons
The other officials in attendance made it clear that as the government has to factor in the needs of farmers and the public, they have to adjust the price of wheat.
In the meeting, Punjab Chief Secretary Yousuf Naseem Khokhar said Rs1,300 is an artificial and unrealistic price for wheat, as it would require granting even heavier subsidies and could encourage smuggling, so Rs1,375 was a more appropriate price.
PTI Core Committee Member Jahangir Tareen, Punjab Food Minister Samiullah Chaudhary, Punjab Agriculture Minister Nauman Langrial, the Punjab agriculture and food secretaries, the food department director, and leaders of the Flour Mills Association also participated in the two-hour meeting.
The participants were also informed that the price of wheat in the open market if fluctuating between Rs1,390 per maund and Rs1,430 per maund, while the average price of flour is about Rs790. It was also noted that the public is facing no shortages of flour.
Tareen, Chaudhary, Langrial, and Khokhar agreed that there is no public issue with regard to purchasing flour and the market is looking stable, so there is no need to artificially lower prices as it would also create an opening for smugglers to exploit.
Sky-high: Wheat prices in Punjab hit record highs
The participants were told that the food department currently has 4.8 million tons of wheat in its reserve which was procured from the farmers at a rate of Rs1,300 per maund.
The various overheads run to about Rs487 per maund, so the average cost to the government is estimated at Rs1,787 per maund.
In this scenario, the government has to bear a total subsidy of Rs42.61 billion against the sale of 3.5 million tons wheat, and by selling it at Rs1,375 the total subsidy provided would fall to Rs36 billion.
Leaders of flour mills association have already called for the immediate lifting of the ban on the export of wheat. The government had told them that it would mull over it in December.
A high-level meeting at the Prime Minister House on Saturday agreed to increase the official rates for wheat in Punjab to Rs1,375 per 40kg bag of wheat and Rs808 per 20kg of flour.
The Punjab cabinet is expected to formally approve the new prices next week, while the government will resume releasing wheat to flour mills at the new price after the Eid holidays.
Sources said that during the meeting, the Punjab industries secretary was providing unreliable data to back a proposal to keep the support price of wheat at Rs1,300 per maund (40kg), as he was unable to support his claim that the prices of roti and nan would rise by Rs1 and Rs2 if the rates were raised.
Wheat production estimated at 25.16 million tons
The other officials in attendance made it clear that as the government has to factor in the needs of farmers and the public, they have to adjust the price of wheat.
In the meeting, Punjab Chief Secretary Yousuf Naseem Khokhar said Rs1,300 is an artificial and unrealistic price for wheat, as it would require granting even heavier subsidies and could encourage smuggling, so Rs1,375 was a more appropriate price.
PTI Core Committee Member Jahangir Tareen, Punjab Food Minister Samiullah Chaudhary, Punjab Agriculture Minister Nauman Langrial, the Punjab agriculture and food secretaries, the food department director, and leaders of the Flour Mills Association also participated in the two-hour meeting.
The participants were also informed that the price of wheat in the open market if fluctuating between Rs1,390 per maund and Rs1,430 per maund, while the average price of flour is about Rs790. It was also noted that the public is facing no shortages of flour.
Tareen, Chaudhary, Langrial, and Khokhar agreed that there is no public issue with regard to purchasing flour and the market is looking stable, so there is no need to artificially lower prices as it would also create an opening for smugglers to exploit.
Sky-high: Wheat prices in Punjab hit record highs
The participants were told that the food department currently has 4.8 million tons of wheat in its reserve which was procured from the farmers at a rate of Rs1,300 per maund.
The various overheads run to about Rs487 per maund, so the average cost to the government is estimated at Rs1,787 per maund.
In this scenario, the government has to bear a total subsidy of Rs42.61 billion against the sale of 3.5 million tons wheat, and by selling it at Rs1,375 the total subsidy provided would fall to Rs36 billion.
Leaders of flour mills association have already called for the immediate lifting of the ban on the export of wheat. The government had told them that it would mull over it in December.