LAHORE: With the expiry of Ramazan (subsidy) package, the flour prices have returned to pre-fasting month level of Rs785 per 20kg against Rs660 during the month.

For a 10kg bag, the price was Rs310 for the month.

The Punjab government had committed Rs5 billion for subsidy for the holy month and allocated 200,000 tonnes of wheat to ensure less flour price. However, it could release only 175,000 tonnes during the 30 days of fasting.

“In fact, there were two rates during the holy month,” says Asim Raza of the Pakistan Flour Mills Association (PFMA). The 10kg bag in Ramazan bazaars was sold at Rs310 per bag. Since a 20kg bag was not available in those bazaars, its rate in normal supply channels was Rs610kg.

The Punjab government was also releasing wheat at Rs1,050 per maund for Ramazan bazaars and at Rs1,130 per maund for normal supplies. That was why the market had two rates even for subsidised flour, he added.

“Otherwise, there has been no increase in price despite the increase of wheat prices in the open market. The rates have just returned to their pre-Ramazan level,” he concluded.

Published in Dawn, Aug 2nd , 2014