The Punjab Food Department has decided to discontinue a substantial subsidy programme linked to the allocation of government wheat quotas.
Officials responsible for this matter have informed the media that the government has set the price of wheat at Rs3,900 per maund, with the distribution of wheat from the government quota to flour mills commencing on October 15th.
Within the framework of the government quota, wheat will be made available to 1,000 operational flour mills at a rate of Rs4,450 per maund.
In the wake of the issuance of government wheat quotas, a 20-kilogramme bag of flour will be retailed at Rs2,600, while in the open market, the same 20-kilogramme bag of flour is currently selling for Rs2,750.
These officials have also disclosed that the Punjab Food Department currently maintains a wheat stockpile of over 40 lakh tonnes.
In June, the Punjab Food Department had temporarily halted the allocation of wheat quotas to flour mills, opting instead to conduct wheat auctions in accordance with the regulations set forth by the Public Procurement Regulatory Authority (PPRA).
As reported by ARY News, the Punjab Food Secretary mentioned that mill owners are eligible to participate in these auctions.
Furthermore, the provincial government is contemplating the provision of direct subsidies on flour, with these measures aimed at curbing any irregularities associated with the allocation of wheat quotas.