Punjab Flour Mills Association (PFMA) chairman, Haji Ibrahim, told Business Recorder on Monday that the mill-owners will increase flour prices by Rs 6 a bag sometime this week.
He held the government responsible for high flour prices and was of the view that the millers have been demanding early release of quota of wheat from the government godowns so as to help them control the flour prices at the retail level, but the demand is yet to be fulfilled.
Haji Ibrahim added that the millers were buying wheat from the open market at high rates and in the given situation they were left with no other option but to pass on additional cost to the consumers.
He said the PFMA had held a meeting with Chief Minister Punjab during holy Month of Ramazan apprising him of the rising flour prices. Chaudhry Pervaiz Elahi hinted at early release of wheat from the Punjab food department's godowns.
The mill owners do depend on open market for wheat from April to October every year but for the remaining period of five months ie November-March they rely on the stocks available with the provincial food departments and Passco.
Through wheat quota the government helps the mill-owners control flour prices throughout the year. The quota becomes more significant to the millers from November to March when wheat prices go substantially up in the open market.
At the end of buying season, the government had announced that Passco and the provincial food departments have optimum level of wheat stock in their godowns to meet the need of the mills and ensure smooth supply of flour (atta) in the open market, and the PFMA chairman said that in the given situation the government has no logic to delay release of the quota to mills.