LAHROE - The millers have announced to stop flour supply to all outlets of the Utility Stores Corporation of Pakistan (USC) across the country, as the USC is not fulfilling their demand of raising the price of 20 kg flour bag by Rs 40.The former chairman of Pakistan Flour Mills Association Sheikh Asim Raza Ahmed told The Nation that “we have given the five-day time to the USC authorities to raise prices which have lapsed now. So, we suspended the supply to the USC outlets in Karachi, Sukkur, Rawalpindi, Gujranwala and Sialkot on Friday.”“And now rest of the supplier will stop sending flour consignment to the utility stores from today (Saturday) and this stoppage will continue until the price of flour is raised by Rs 40 per 20 kg bag, as our cost of production have increased manifold,” he claimed.However, official sources in the utility stores claimed that govt was not in a position to increase the flour price, particularly when it is providing huge subsidy to the public on flour in the month of Ramazan.Sources said presently, several flour mills - including Al Ramzan Flour Mill, Modern Flour Mill, Nasir Flour Mill, Punjab Flour Mill and Sartaj Flour Mill – were providing Lahore North region’s utility stores around 5,000 flour bags on A daily basis.They said there was no disturbance on flour supply on Friday and claimed the supply from mills as well as sale from outlets would continue on Saturday too.Sources said rising demand of wheat for export purpose had created panic in domestic market as the wheat prices in global market had increased by Rs 250 per 40kg. Market sources said the price of wheat flour would increase after Ramazan.Wheat prices in the world market crossed $300 per tonne mark after a long gap and export at this price level was viable for Pakistani exporters, they said. In addition, exporters also acquired warehouses to store their newly-acquired wheat stocks, sources added.Presently, exporters are busy in swift procurement from the open market as wheat prices in the world market are on higher side and they are expecting huge export orders.They said wheat price had registered an increase of Rs 1,250 per tonne in the domestic market during a week.Market sources said commodity exporters, expecting huge orders from abroad, were aggressively procuring wheat to fulfil their requirements, as commodity prices in the world market had been steadily on the rise.Pakistan’s wheat export had declined over the past few months because of low prices in the world markets, but rising wheat prices abroad had opened up new venues for export of Pakistani commodity.They said that the abrupt surge in buying in the wake of rising wheat prices in the world market has created a panic in the domestic commodity market, resulting in a massive increase in wheat prices. With the current rise, wheat is being sold at Rs27,750 per ton against a price of Rs26,500 per ton a week ago.Flour millers have already announced to increase milled flour price by Rs 2 per kilogramme with economy flour being sold in the market at Rs 320 per 10 kg bag. Previously, it was being sold at Rs 300 in Sindh.Although the country had a bumper wheat crop this year and the market stocks were estimated at millions of tons, but the exporters’ extraordinary buying spree could affect the price and the availability of wheat in the domestic market.Presently, Punjab Food Department has a stock of 4.5 million tonnes of wheat, about 2.7 million tons are stored by Pakistan Storage and Services Corporation (Passco) and the Sindh Food Department holds about a million tonnes of wheat stocks.