Punjab Food Department on Wednesday announced to terminate subsidies on wheat, a move that would have significant financial implications, running into billions of rupees. Sources said that the official wheat price now is Rs 3,900 per 40kg.
They said that the government would initiate the supply of wheat to flour mills from October 15. After which, they said, the official rate of 40kg wheat that would be sold out to one thousand operational flour mills would be Rs4, 450.
This shift in policy meant that after the distribution of government wheat, a 20-kilogram bag of flour would be available to consumers at a cost of PKR 2,600. By contrast, in the open market, the same 20-kilogram bag of flour would be sold at a rate of PKR 2,750. The officials underscored that the Punjab Food Department boasted a substantial wheat reserve exceeding 4 million metric tons. This decision aligned with the government’s efforts to rationalize subsidies.
