Punjab govt accepts Rs1,040 flour price for 10kg bag after standoff with mills

Punjab Food Directorate has accepted revised flour prices proposed by the industry, ending weeks of dispute between flour mills and authorities over retail rates and supply restrictions.

As per media reports, the department accepted retail prices of Rs1,040 for a 10kg flour bag and Rs2,050 for a 20kg bag, increasing rates by Rs135 and Rs240, respectively, from previously notified prices.

With the decision, supply of 10kg and 20kg flour bags will continue across the market and district administrations have been directed to stop inspections related to price violations on these packs.

The dispute began after the Food Directorate directed mills to either sell flour at the old notified rates or halt production. Lahore-based mills were also restricted to the production of only 15kg bags.

Show-cause notices were issued to several major flour brands for selling products at revised prices linked to open market wheat costs. Industry officials said the directives had been communicated verbally.

The enforcement campaign was later suspended and production restrictions were withdrawn before the latest decision formalised the revised market rates.

Retailers said flour was now being supplied at the newly accepted prices, although the Food Department has yet to issue a fresh written notification.

Industry representatives said the revised rates had brought Lahore’s flour prices in line with those in other cities across Punjab.

Separately, Pakistan Flour Mills Association Central Chairman Badruddin Kakar called for the removal of restrictions on inter-provincial wheat movement.

He said Punjab, which produces around 75% of the country’s wheat, currently has sufficient stocks, while Khyber Pakhtunkhwa and Balochistan depend on wheat and flour supplies from Punjab to meet domestic demand.

According to the association, the Punjab government imposed restrictions on inter-provincial wheat movement last year, which it termed a violation of Article 151 of the Constitution.

Kakar said lifting the restrictions would help balance supply and demand across the country and allow consumers to benefit from domestic wheat production.