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New policy on wheat price may raise atta rates
LAHORE—The Punjab government is introducing a cascade price
structure under which the issue price of wheat will be fixed
on monthly basis from the upcoming procurement drive
(2002-2003) which is likely to increase atta price in the
market.
According to sources, the Punjab Food Department has already
finalised all arrangements to implement the new policy from
September 2002 except the determination of the new price
structure which will include the prices of all the months to
come. The new price structure will be announced before the
start of upcoming procurement drive.
The new policy has been formulated in order to minimise the
role of public sector in the purchase of wheat. The officials
of Food Department in support of this move said that it will
be a great incentive for the private buyers in wheat business.
He said that with the implementation of new system, wheat
procurement and storage business will be made more feasible
for the private parties.
“Like previous season, there will be no ban on free movement
of wheat during the upcoming drive, the officials said. They
said that private parties will be allowed to transport wheat
from one district or province to other without any hindrance.
An official of the Food Department insisted that such move
will not lead to increase the price. He said that due to the
abundance of wheat in the market, the price would stabilise.
Meanwhile, the flour millers are of the view that this policy
will lead to increase in atta prices and will cause
instability in the market. They said that the price of atta
would be increased every month after the implementation of
cascade price structure. However, he expressed doubt about the
implementation of cascade system from the forthcoming
procurement drive. They said that this move could also lead to
the withdrawal of subsidy.
The cascade price system is a device or arrangements in which
prices are fixed in order one after the other. Now, the issue
price of wheat will be fixed in sequence on monthly basis
Courtesy The nation February 8, 2002
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Pakissan.com;
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