LAHORE, Oct 5: Millers on Friday increased flour price yet again, fourth time in the last six weeks, taking the exmill price of a 20kg bag to Rs620 after an increase of Rs10 per bag.

According to the millers, the Punjab government is not releasing wheat from the official stocks and the open market is getting dryer by the day.

On Friday, wheat in the open market went beyond Rs1,100 per 40kg forcing the millers to reflect the increase in price.

According to Asim Raza of the Pakistan Flour Millers Association (PFMA), in addition to ever-increasing wheat prices in the market, quality issues have also plagued the supplies. Farmers seldom fumigate their stocks and the monsoon rains hit them badly.

That is why almost the entire supply is now infested to varying degrees.

These quality issues hit the millers on two counts deteriorating flour quality and adding to the cost. He claimed the millers had no choice but to reflect increased cost of production in the price, as the price would now sustain this level even if the official releases started, as reported at Rs1,075 per 40kg, for two reasons.

Firstly, wheat from the private sector comes in gunny bags that traders get back, costing the millers nothing.For official releases, the millers provide bags, which cost around Rs40 to Rs50 per bag (100kg).

Secondly, the private traders bring the commodity to the mill gates, whereas the official releases are delivered at the stock gates and the millers bear the cost of transportation another Rs35 per 100kg.

Both these factors would sustain higher prices in the market, he feared and added: `There is another minor factor; from the private traders, the millers get a relief of one kilo on each bag, but they get one kilo less when it comes to official releases.

Newly-inducted Food Director Usman Younus claimed the increase was `unjustified as official releases were now a matter of days, if not hours, and the association is fully aware of the fact`.

He said the department had been monitoring the wheat trend in the open market, and there was no panic. It was also releasing wheat from some centres in southern part of the province and there was not much shopping on them meaning thereby there was not much of a crunch as claimed by the millers.

`The department will certainly have a meeting with them and only justified increase will be allowed,` he said.