LAHORE: Punjab is awaiting the federal government decision on target subsidy model before going to fix rate of wheat to be released to flour millers from official storages.

“We are still waiting for directions from the federal authorities about the mode and amount of targeted subsidy to be offered to the poor consumers before fixing the issue price of wheat for flour millers,” a senior food official told Dawn on Tuesday.

He said Dr Sania Nishtar, the special assistant to prime minister on poverty alleviation, is working on a model for the provision of targeted subsidy to the poor and its modalities have not yet been shared with the provincial government.

“There are various proposals under consideration, including issuing a card like Kisan card for offering cash, instead of a blanket subsidy the food department has so far been offering to all and sundry by providing subsidised wheat to flour millers.”

Replying to a question about the demand by millers for release of wheat from official storages, he said only those were asking for it whose mills wholly depend on the issuance of official subsidised grain, while others were just curious to know the price of the official releases so that they would not purchase the commodity from the open market at higher rates.

The official said the millers were still holding at least 0.9 million tonnes of grain sufficient for at least one month of requirements of Punjab.

He said retaining wheat was not an option for his department because it meant increase in the incidental charges but they also had to keep in mind that ensuring availability of grain in the last month before arrival of the new crop was very crucial when the commodity would go missing from the open market. Panic buying in such an event would further deteriorate the situation and blemish goodwill of the authorities, he added.

Published in Dawn, September 1st, 2021