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Food dept to release 350,000 tons subsidised wheat

June 27, 2014

Salman Abduhu

The Punjab Food Department is going to release 350,000 ton subsidized wheat at reduced rate of Rs1,050-1,130 per 40 kg to the flour mills while the millers to share Rs210 million subsidy for the provision of cheap flour during the whole month of Ramazan.

Pakistan Flour Mills Association Punjab Chairman Mian Riaz said that earlier, the department was providing wheat to the mills at Rs1,330 per 40 kg, which will now be sold at Rs1,130 to be grinded for flour sale in open market while for sale in Ramazan Bazaars the millers will get wheat for Rs1,050 per 40kg. In response to the subsidy of Rs200-280 per 40 kg the millers will provide relief to the consumers of Rs15 per 20kg flour bag by exempting freight of Rs10 and grinding charges of Rs5.

Mian Riaz said that flour mills will sell around 10.4 million bags of 20kg throughout the province during Ramazan and Rs15 reduction of subsidy by the PFMA turns to Rs210 million in total. He said that after the subsidy 20kg flour bag will be available for Rs660 in open market while the same will be sold for Rs620 in Ramazan Bazaars. In the same way 10kg flour bag will be sold for Rs330 in open market while in Ramazan Bazaars it will be available at Rs310, he added

Mian Riaz said that lose flour, after a reduction of Rs4 per kg, would be available at Rs33 per kg, while at Bachat and Sasta Bazaars, it would be sold at Rs31 per kg as per a decision of the Punjab government.

Pakistan Flour Mills Association former chairman Asim Raza said that the Punjab government subsidised the sale of flour all over the province whereas in Sindh, the private sector attempted to give relief but on a limited scale.

In Sindh, millers slashed price by Rs2 per kg at the fair price shops of mills and in Bachat Bazaars in Karachi to Rs36 (ex-mill) per kg from Rs38 per kg. Consumers will get a discount of Rs2 per kg on flour only at the 170 fair price shops of flour mills across Sindh and at 110 Bachat Bazaars in Karachi while no reduction has been made for the retail shops in Karachi.

In Khyber Paktunkhawa, neither the provincial government nor the millers announced any Ramazan package so far.

The price of 100 kg wheat bag in the open market had fallen to Rs3,300 from Rs3,400 last month and so far wheat rate had been stable on improved supply from Sindh and some quantities from Punjab.

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Source: Nation (Pakistan)

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