LAHORE, Dec 12: The Pakistan Flour Mills Association (PFMA) on Monday unilaterally increased the price of wheat flour by Rs3 per 20kg bag – the third raise in one month.

According to PFMA officials, the new ex-mill rate would be Rs253 per 20kg bag and the retail price Rs262.

The association had increased the price of 20kg bag from Rs243 to Rs248 after Eid-ul-Fitr on the pretext of increased wheat price in the open market. It then quietly increased another Rs2, thus taking the price to Rs250. On Monday, it increased the price to Rs253.

According to Majid Abdullah of the PFMA, the new price reflects the increase in the wheat issue price.

The government had fixed the flour price at Rs233 for a 20kg bag last year when it was releasing wheat at Rs400 per 40kg. It has now raised the wheat price to Rs440, thus necessitating a Rs20 per 20kg bag increase. The association has thus raised the flour price from last year’s Rs233 to Rs253 per 20kg.

The decision has been taken only for Lahore division and other divisions of the province would take their own decisions. The price in Rawalpindi division is already higher than this one, he said.

He said the association was also demanding another Rs5 per 20kg to offset inflationary effects.

The government agrees that there should be some increase on this account, but it has still not finalised the price. The two parties will now start talks to finalise the new price.