LAHORE, Nov 10: The Punjab food department has delayed issuance of wheat yet again, which it promised to do from Nov 10 — a third miss of deadline in the last month or so.

Explaining the delay in release, department officials say wheat price is slightly higher as compared to the expected issuance price in only eight districts of the province — hovering between Rs430 and Rs450 per 40 kilograms.

It is ranging between Rs415 to Rs430 in the remaining 27 districts. The department fears that if it starts releasing wheat, expected to be sold at a rate of Rs430 per 40kg, it may end up hiking prices in 27 districts and lowering them in eight district. That’s why, the department is thinking of starting a partial release in divisions like Rawalpindi, Lahore and partly Gujranwala.

The department is also delaying the release because of the report of the State Bank of Pakistan, which claims that the private sector still holds some 500,000 tons of the commodity. The bank’s statistics are based on commodity finance which commercial banks advance to traders.

Based on these figures, the department thinks that it can delay the issuance for a while. But considering market realities in three divisions, it may start partial release in eight districts and delay in others, says a spokesman.

But, the policy, of course, would need the approval of the chief minister, and the department plans to approach him in the next 24 hours, say sources.

The Pakistan Flour Mills Association, however, rejected the claim of the department, terming it as counter-productive for millers. It says the department must start issuing wheat regardless of the so-called market considerations. If the food department thinks that wheat price is below the official price in majority of the districts, mills would not purchase the official wheat. They would continue depending on the private wheat.

Majid Abdullah of the PFMA says that the department should understand market mechanism instead of creating its own whims. The mills are getting some wheat from the market, but certainly not as per their needs. That is why they are asking the department to release wheat.

The millers provided 100,000 tons of wheat under a Ramazan package but they purchased only 70,000 tons of it from the department, as they were getting wheat at a competitive price from the market. They would not buy it from the department if the market price is below the official price, he added.

“These are delaying tactics which are counter-productive and would benefit no one. The department has sufficient wheat in its stocks and must not become unnecessarily miserly in its policy and hurt the people and the millers alike,” he concluded.