Punjab likely to release wheat to mills at Rs1,600/40 kg

LAHORE: The Punjab Food Department has prepared Wheat Release Policy 2020-21, which may help in lowering flour price by about Rs75 to Rs100 than the prevailing rates of over Rs1020 per 20kg bag.

According to new grain issuance policy, food department has 4.328 million tons wheat in its godowns and there is urgent need/demand to start releasing wheat to flour mills for ensuring uninterrupted supply of wheat flour and to stabilise its prices.

The issue price of wheat would be Rs1600 per 40 kg excluding cost of ‘bardana’ or gunny bags. Although there are certain issues need to be clarified, the eventual retail price of 20 kg flour bag may vary between Rs920 to Rs 975. However, actual price of flour will be set as per new procedure under which the flour mills will be bound to sell flour at the maximum ex-mills price to be determined by third party and retail price to be determined by DCs concerned.

Introducing a new third-party mechanism for verification of functional mills, provincial food department may issue wheat to flour mills after getting approval by the committee constituted by the respective district food controller headed by tehsil headquarters assistant food controller.

As per the proposal, grain quota will be on the basis of targeted population of the district uniformly as per approved roller bodies of flour mills falling in a district. The maximum limit for issuance of wheat to the flour mills will be up to 12 roller bodies.

Flour mills getting wheat from the food department will also be entitled to grind their private wheat stocks. Flour mills will observe extraction ratio of 80:20 in respect of public wheat stocks. The flour mills getting wheat from Punjab Food Department will be bound to deliver minimum 50 percent ‘atta’ obtained from their private wheat stocks in their respective district.

The flour mills will be bound to upload the daily wheat purchase, wheat grinding and ‘atta’ supply detail with valid food grain licence no of ‘atta’ dealer on flour ledger system daily basis and Punjab Information Technology Board (PITB) will monitor the grinding detail and reconcile the monthly grinding of said flour mill by fetching the details of electricity consumption online from the DISCOs concerned.

PITB will communicate about defaulter mills (involved in less grinding) via email to the district food controller concerned. The flour mills failing to upload data on flour ledger system will not be entitled to get wheat from the food department.

According to Wheat Release Policy, the flour mills will provide wheat flour to licensed dealers only. Wheat products supplied to other than licensed dealers will be presumed to be wheat flour not supplied and shall be dealt with accordingly.

It should be ensured that the wheat quota issued from the government godowns must be actually grinded by the flour mills and justified by electricity bills along with submission of daily supply report both through flour ledger and manual. Execution of agreement with each and every flour mill for observance of process will be ensured.

If the flour mills is found involved in less grinding of public wheat stocks at any stage, the mill will be held responsible to deposit recovery at notified rates of food department and licence may be suspended/cancelled.

Efficient flour mills may be entitled to enhance quota subject to following: Regular punching of information on PITB flour ledger system. The mills grinding private wheat stocks during previous month 50% over and above the public wheat stocks provided by food department may claim 10 percent of the private wheat stocks as enhanced quota for the coming month. Verification of grinding of private wheat stock and enhanced quota supplied in the local market by third party.

Rawalpindi, Gujranwala divisions and Lahore Division except Nankana Sahib district will be treated as deficit divisions and wheat will be issued to the flour mills/ ‘chakkis’ as per body quota. The flour mills of deficit divisions will lift at least 20 % of authorised quota from the attached districts notified by the directorate. Therefore, the surplus stocks of Sargodha Division and Sahiwal Division will be kept reserved for the flour mills of Rawalpindi and Lahore Division respectively.