LAHORE, Dec 9: The Punjab government approved on Tuesday an ex-mill price of 20kg flour at Rs203 in the province, which means that retail price of flour would move in the range of Rs203 to Rs205 throughout the province.

A meeting between the millers and the government officials was held here on Monday, in which both parties decided to fix the price at Rs203 against the previous price of Rs198.

The Punjab government had recently increased wheat release price by Rs5 per 40kg — from Rs330 to 335. The new price is meant to help millers absorb the increase.

The new price is expected to be notified in a couple of days. The millers, however, claimed that after fixing the ex-mill rate at Rs203 per 20kg, retail rate would be Rs212.

The government, on its part, showed the determination of keeping the price at the stipulated rate of Rs203 to Rs205 — after including retail profit of Rs5 to Rs7.

A meeting of all the district coordination officers, who now control the price under the devolved dispensation, and the district food coordinators has been called for Thursday to ensure the new price.

According to an official, the government has made it clear to the millers that it would neither tolerate any fluctuation in price nor inter-mill trade. It has also constituted teams to check grinding capacity of mills and their actual grinding.

Punjab Food Minister Chaudhry Mohammad Iqbal asserted that no one would be allowed to take any undue advantage of the situation. The millers are allowed a margin of Rs5 on the retail price and it would be ensured through every possible means.