PESHAWAR, Sept 22: With the arrival of fresh stock from Punjab, flour prices in NWFP markets have started declining, dealers and shopkeepers say.

They said that prices of a

20kg bag of flour ranged between Rs300 and Rs310 on Saturday, showing a fall of Rs60-70 per bag as compared to the last week.

However, the prices were still Rs25-30 higher than the pre-Ramazan levels.

Food Grain Dealers Association president Rambil Khan told Dawn that the main reason behind the unprecedented increase in flour prices was limited supply of the commodity from Punjab.

He said that now supply from Punjab had improved and the prices had started falling in the local market. He, however, said that a further decline in the prices would not be possible because ex-factory rate of a 20kg bag of flour in Punjab was Rs285 that came to Rs300 if brought to Peshawar.

Mr Rambil said that raids on wheat hoarders, releasing additional quota to Punjab flour mills and allowing its import were some of the measures that helped in bringing down the prices in the local market.

He said that since the local flour industry did not produce sufficient flour for the domestic consumption, traders had to rely on supply from Punjab.

Meanwhile, NWFP Food Minister Fazale Rabani had a meeting with office-bearers of the All Pakistan Flour Mills Association (NWFP chapter), says a handout.

The meeting decided that flour mills availing the government wheat quota would supply flour to consumers through the specified fair price points in coordination with the district coordination officers concerned.

It was decided that the ex-factory rate for a 20kg flour bag would be Rs295 and the retail rate would not exceed Rs305.

Field staff of the food department and the district administration had been asked to ensure that flour was distributed to consumers in a transparent manner, the handout said.