Some millers see 'fluid' flour market after raise in wheat purchase price.

LAHORE -- Lauding the Punjab government's declaration of increasing the procurement price to of wheat to Rs3,900 per 40kg, a group of flour millers, however, fears the decision may disrupt the flour market if the rate of the current grain supplies from official storages is not brought on a par with the rate for new government purchases.

'The Progressive Flour Millers lauds the government's decision of increasing the minimum (wheat) support price to Rs3,900 per maund. However, this increase could have been more beneficial had it been announced at the time of (wheat) sowing rather than at harvesting time,' a press release issued on behalf of Khaleeque Arshad and Majid Abdullah, chairman and president, respectively of the group said here on Sunday.

The caretaker government had on Saturday enhanced the wheat procurement price to Rs3,900 per 40kg from last year's Rs2,200 per 40 kg.

The progressive millers said that had the announcement been made at the sowing time, it would have encouraged the farmers to grow more grain.

They said that they have serious reservations on the announcement of the start of the wheat procurement drive by the Punjab food department on March 10.

For first time, dept will release wheat to mills at a lower rate than its new procurement price

They said in the press release that the food department is presently issuing wheat to flour mills at a rate of Rs2,300 per 40 kg, while at the same time it will be procuring wheat from farmers at Rs3,900 per 40 kg.

This situation will lead to corruption at the hands of 'inefficient' millers and the lower formations of the food department, they said.

'The lucrative price differential...