Punjab decides to end subsidy on wheat

LAHORE: The Punjab Food Department has decided to end subsidy worth billion on the issuance of the government wheat quota, ARY News reported on Wednesday.

The concerned officials told the media that the price of the government wheat was fixed at Rs3,900 per maund and the disbursement from the government quota to the flour mills will be started on October 15.

Under the government quota, wheat will be sold to 1,000 operational flour mills at the price of Rs4,450 per maund.

The officials added that a 20-kilogram sack of flour will be sold at Rs2,600 after the issuance of the government wheat quota, whereas, the flour sack of 20-kilogram is being sold at Rs2,750 in the open market.

The officials said that the Punjab Food Department has a stock of over 40 lakh tonnes of wheat.

In June, the Punjab Food Department had suspended the wheat quota for flour mills and decided to auction the wheat under Public Procurement Regulatory Authority (PPRA) rules.

The Punjab Food Secretary said that mill owners can also participate in the auction. He added that the provincial government is mulling to grant direct subsidies on flour. He said that the steps were taken to stop misappropriations in the wheat quota.