LAHORE – The flour millers have increased the price of “atta” by Rs 10 per bag of 20 kgs as Flour Mills Association Punjab has announced an increase in ex-mill price of a 20kg flour bag to Rs630 and on retail price Rs640, citing high cost of wheat in open market along with a rise in the cost of utilities. They also said that flour mills are facing shortage of wheat supply and they have no option but to raise the rates of their products. They warned that flour price could go up further in coming days. Talking to the media, Pakistan Flour Mills Association (PFMA) central leader Asim Raza, after attending association’s emergent meeting here, said that if government starts supplying wheat to mills on low prices, millers would also reduce the prices of flour. INP add from Islamabad: Pakistan had a bumper harvest of wheat crop for the last four years, with an all-time record production of 25.21 million tonnes in 2010-11. For the year 2011-12, the wheat crop is estimated at 23.52 million tonnes.Wheat is not only the major staple food grain but also the food security crop of Pakistan. Being a very sensitive commodity, a small change in its price and availability has a considerable impact on consumers, especially the poor sections of the community. Hence the govt is much concerned with its supply and demand situation so as to ensure the availability of this basic food security item. During the current year, the public sector wheat stocks were 9.30 million tonnes including current procurement of 5.79 million tonnes and last year carry-over stocks of 3.51 million tonnes.The public sector on the average annually releases 6.5 million tonnes to flour mills and other agencies/areas. Maintaining the strategic reserve of one million tonnes, the country is left with 1.80 million tonnes surplus. Thus the country is quite comfortable in wheat supply during the current year. In view of sound supply position, the government has allowed the private sector to export wheat and its products. It is reported that the private traders have exported wheat and its products from the open market in recent months in the wake of rising prices in the world market. Major portion of these exports comes from wheat flour, accruing value addition receipts to the economy.The government has also opened releases of wheat to the flour mills w.e.f 1st September, 2012 to help stabilize the domestic market. The release price is being regularly monitored by the provincial food departments and is adjusted in line with the emerging domestic and world situation to ensure ample supply of the staple food grain for the sake of food security at home.It is reported by the provincial food departments that the releases are slow this year as compared to last year indicating some stocks of wheat are available with the private sector. This will further add in improving the supply position of wheat.