LAHORE, Oct 19: The flour price is set to jump at least Rs15 per 20kg as government gets ready to release its stocks according to last year’s support price and miller insist that increased price of input must be reflected in the new price.
At present, a 20kg flour bag is being sold in market at around Rs250, which would jump to around Rs265 once the new realities take hold of market.
The new price would reflect a whooping 280 per cent increase in the last 15 years in flour price. In 1990, the ex-mill price of a 20kg bag used to be Rs90, which would now go up to Rs252 if the demand of millers accepted on Friday when Chief Minister Pervaiz Elahi returns.
The price of flour has risen by a staggering 160 per cent since 1999. A 20kg bag used to cost Rs156 (ex-mill), which would now jump to Rs252 according to new scheme of things.
On Wednesday, the millers and departmental negotiations could not bore fruits because chief minister was abroad. The department has moved two summaries to the CM for a release price of Rs425 and Rs430. The Punjab government wanted to keep price little bit higher than Sindh, which was releasing wheat at Rs425 per 40kg, so that wheat does not start draining to neighbouring province. Should that happen, the Punjab government would probably be releasing wheat at Rs430.
The final decision would be taken by the chief minister when he returns and millers plan to convince him about the validity of their claim.
According to present price formula, the ex-mill price should be Rs248 per 20kg. At present, the ex-mill rate is Rs233 with the last year’s release price of Rs400 per 40kg. If the addition of Rs30 per 40kg is reflected in ex-mill rate, the new rate should be Rs248 per 20kg. But the millers maintain that present price formula was finalized five years ago and since then input prices have gone up substantially.
