August 28, 2008	Thursday	Sha'aban 25, 1429

LAHORE, Aug 27: The Punjab government will start releasing wheat from Thursday (today) at a rate of Rs560 per 40kg and expects the millers to sell flour at an ex-mill price of Rs290 per 20kg and at the retail price of Rs300.

According to Punjab Food Department officials, the release criteria will include population and district-wise requirements. The price and release quantity is specifically for the month of Ramazan and will be revised afterwards.

The department will also ensure an effective ban on inter-district movement of wheat and flour during the month, and no permit will be issued to any miller for sale of flour in the NWFP.

“The government has also decided that the millers who do not participate in Ramazan package will be excluded from releases for the rest of season,” says an official.

The government has taken a very serious note of some millers’ threat that they will neither be lifting official wheat nor be selling flour on officially declared rate of Rs290 per 20kg bag. “The government is very seriously considering taking over mills of rebellious millers, and the threat could be executed within or after Ramazan if situation does not improve,” he said.

“The millers have got used to windfall profits during the previous regime because some high-ups owned flour mills. With regime change, the millers’ profits have to be rationalised. It will certainly be a painful process for the millers, but they cannot be allowed to reap windfall at the cost of common man,” he asserted.

The department has strong backing of the Punjab government, especially the chief minister, to bring millers’ expectation and profits down, and it will be done during the rest of the season.

“The department knows the anatomy of flour business and how much millers make out of it. On the basis of these calculations, it has calculated new ex-mill and retail price. The government knows millers will still be making reasonable profit, but certainly not windfall, as they have got used to,” he said.

Feeling more confident after joining hands of two rival groups, the millers now feel they can take on the government, and the PFMA has refused to start lifting wheat at Rs560 per 40kg and sell flour at the official rate.

“The new rates do not make economic sense and the millers would naturally not be part of the new planning,” says a miller, who refused to be named.