‘Flour price may increase’

LAHORE : As a result of increase in minimum wheat support price to Rs2,200 per 40kg, flour millers have anticipated Rs200 jump in consumer price of 20kg bag of flour from upcoming season.

According to Asim Raza, central leader of Pakistan Flour Mills Association's ruling group, price of flour could be as high as Rs200 per 20kg bag to Rs1,300 from present price. With Rs50 per bag increase on account of revised grinding charges and impact of hike in petrol prices, 20kg flour bag will be costlier in the retail market to Rs 1,350. With such a massive impact, flour price will see a spike of Rs12.50 per kg. He asked the government not to go for upward revision in minimum support price of wheat from present rate of Rs1,950 per 40kg to Rs 2,200 for next season. It will add to inflationary pressure being endured by the masses, he observed. However, according to market insiders, flour millers want to keep wheat support price lower as it would lead to minimal procurement of wheat by public sector departments. Hence, private buyers including flour mill owners would be able to purchase greater volume of wheat.

Farmers’ representatives have also raised demand for increasing wheat support due to what they called higher cost of production.