Subsidised flour goes scarce

Hike in official rates in the offing amid flood woes

LAHORE:

Subsidised flour has disappeared from the markets amid worsening shortage of the commodity in Punjab, particularly the provincial capital.

According to sources in the markets, smuggling could not be prevented despite the food department’s efforts and the price control measures are also proving ineffective as flour is being sold at varying rates across the province.

The price of flour has increased to Rs120 per kg at mills. The provincial food department has proposed to the chief minister that the price of subsidised flour be increased from Rs980 to Rs1,530 per bag.

A proposal to set the new official price of wheat at Rs2,300 per 40kg is also being considered.

The prices have apparently spiked as a result of wheat shortage due to flooding, which intensified the flour crisis in Punjab.

A bag of 20kg of subsidised flour is being sold at Rs1,350 instead of the fixed price of Rs980. The flour mills, which are allowed to determine their own prices, have raised the price of a 15kg bag of flour to Rs1,600, with retail price reaching Rs1,650. Similarly, the mill owners have set the price of flour at Rs116 per kg but are selling it for up to Rs120. Complaints of subsidised flour being sold in normal bags at higher price are on the rise.

A flour mill owner, Ali Asghar, said while talking to The Express Tribune that good quality wheat was available in the market for more than Rs3,700 per maund.

The sources said subsidised flour was not available in about 80% of the province’s shops. They said Punjab Food Secretary Nadir Chattha had recently informed the chief minister that the province could not sustain the cost of supplying flour at the current discounted rate; hence the price of subsidised wheat should be increased.

The sources said the subsidized flour supply package launched by former chief minister Hamza Shehbaz Sharif would expire on September 20.

It has been suggested that the price of a 10kg bag of flour be raised from Rs490 to Rs665 and 20kg bag from Rs980 to Rs1,330 by lowering the subsidy after the expiry of the package.

The sources said the wheat from the government stock was likely to be issued to flour mills at Rs2,300 per maund instead of Rs1,765 from September 21.

When contacted, Punjab Food Minister Hasnain Bahadur Dreshak said the province had more than 3.2 million metric tonnes of wheat, while the federal government had requested 10 million tonnes.

According to the minister, despite the flood, most of the province’s government wheat reserves are secure and people also had private stocks, so there would be no significant flour or wheat crisis.