Commodity: Flour price increased in Punjab

Cost of 20kg bag goes up by Rs25 after rise in wheat price.

LAHORE:

Flour millers of Punjab have announced an increase of Rs25 in the price of 20kg flour bag from today (Sunday) and prices can rise further later this month because of increase in rates of wheat.

In an emergency meeting held on Saturday, members of the Pakistan Flour Mills Association (PFMA) Punjab Chapter decided to increase the price due to high wheat rates, which crossed Rs1,100 per 40 kg in the open market.

“The price increase is a must for us to survive as it is not possible for the mills to supply flour at old rates any more,” said Asim Raza, an official of the association.

The PFMA members also decided to sit together once again on August 28 and discuss further increase in prices. “It is possible that the price may be increased again in our scheduled meeting, but I cannot confirm it now,” Raza said.

For the past around one month, the millers provided flour at Rs480 per 20kg bag as part of a Ramazan package. Actual price for 20kg was Rs585 and the bag will now be available at Rs610 from Sunday as Ramazan comes to a close.

The association had been seeking ex-mill price of Rs625 for the past many months, pointing to high support price for wheat, increased utility bills, costly diesel and energy shortage. These factors had made it nearly impossible for the millers to sell at previous prices, they said.

Published in The Express Tribune, August 19^th, 2012.