LAHORE, Oct 13: The Pakistan Flour Mills Association (PFMA) on Monday demanded at least 30 per cent increase in wheat release by the food department to “stabilize flour price.”

The association, in its executive council meeting, deplored the cascading of wheat price by the Punjab government and increase in rate of gunny bags. It partially blamed both for hike in flour price in the province.

The cascading, limited to the Punjab alone, created market distortion by giving other provinces price advantage, said Bilal Sufi, newly-appointed adviser of the association. The association was not against the cascading, but it opposes it because of its ill-effects on the market.

The government should have given some relief on gunny bags, but it did not and left the millers with no choice but to increase price, Mr Sufi insisted.

On the other hand, the officials of the food department hoped that flour price would dip in a week or so. They based their optimism on two factors. “First, the expected rise in support price has worked as an incentive for hoarders to stock wheat in the hope of reaping windfall profits next year. Once it is announced and does not turn out to be as substantial as stockists thought, they would release their hoardings.

“Second, with Ramazan just around the corner, the government should take steps to stabilize price within a week.”

They said in fact the current crunch was caused by the private sector holding of wheat, otherwise additional release should have brought the price down.

On Monday, the price of flour was Rs208 per 20kg bag in Lahore and Rs212 in Rawalpindi.