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DAWN - the Internet Edition Next Story

October 26, 2003 Sunday Sha’aban 29, 1424


KARACHI: Consumers to enjoy little relief in Ramazan



By Aamir Shafaat Khan


KARACHI, Oct 25: Consumers will have to pay higher prices for essential items during Ramazan as most of the multinationals, local firms and millers have flatly refused to offer any cut in prices of their products.

The outcome of a long series of meetings over the last several weeks held by the city government with these companies emerged as a setback to the entire exercise.

The companies’ attitude shows that the city government’s allout efforts have failed to persuade them to come to the rescue of common man, who usually faces an unbearable burden of price-hike during the holy month. While profiteers are set to embark upon a highly gainful business activity during Ramazan, multinationals and local firms continued to offer various excuses for not offering a cut in prices. Their insistence mainly based on a high production cost as they cited a constant upward trend in the raw material rates in the world markets and expensive utility services in the city.

In spite of all the odds, the city government has somehow succeeded in ensuring a reduction in the prices of pulses this Ramazan. Pulses are likely to cost lesser not only than the prevailing prices but also against those in the previous year.

It has been observed that Pakistan is the only Islamic country where multinational and local companies resort to dilly-dallying tactics in offering any price-cut to consumers.

Firms (both local and multinational), as well as governments in other Islamic countries come out with attractive cut-price package and ensure availability of their products in more than sufficient quantity only for the benefit of consumers on the eve of the holy month. Contrary to their customary gestures, most of those in Pakistan indulge in profiteering. The ‘discount’ they offer in the name of price-cut often makes it as a slight part of an unimaginable profit added to the overall production cost.

According to the new price list, to be issued by the Karachi Retail Grocers Group (KRGG) general secretary, Farid Qureishi, consumers are offered atta (No. 2.5) at Rs10.50 per kg, 50 paisa more than the price of Rs10 per kg in the previous Ramazan. The list is in printing stage and would be released on Tuesday, said Mr Qureishi.

Similarly, a 10kg-bag of the same atta is to be sold at Rs105 as compared to the previous Ramazan’s Rs100. There is no cut or raise in the price of super fine atta (Maida) as it stood at the last year’s rate of Rs13 per kg. However, Suji price has been fixed at Rs12 per kg, one rupee less than last year’s rate.

The multinational firms dealing in ghee and cooking oil have not only turned down the government’s request for cooperation, but also resorted to a media hype campaign on Saturday warning that they would further increase the prices unless the duty on palm oil was reduced and the sales tax dropped in order to offset the impact of rising palm oil prices in world markets.

Braving the campaign, some of ghee packers’ firms have revised prices of their products downward. The makers of Evion have cut the price of their five-litre tin of soyabean oil to Rs331 from Rs385. It was priced at Rs376 in previous Ramazan. Makers of Tullo has reduced the rates by Rs5 per kg.

However, there would be no cut in prices of Dalda and Habib. The five-kg and 2.5-kg tin of Dalda ghee are currently priced at Rs 395 and Rs205 respectively, same as they were last year.

Consumers, purchasing Soya Supreme, will have to pay Rs385 for a five-kg tin of ghee, showing an increase of Rs10 from the price in the previous Ramazan. Shahbaz ghee will be available at Rs370 for five-kg tin as compared to Rs320 of last year. Despite hectic efforts, no cut in loose ghee price could be effected. Last year, it was sold at at Rs54 per kg as compared to the current price of Rs57 per kg, claimed government officials.

Despite the claim by a senior government official on Friday that some syrup makers had agreed to reduce the rates by Rs5, the price list in printing process shows the price of Naurus and Rooh Afza as Rs75.

The city government officials had not conducted any meeting with the tea packers who, according to them, had already announced reduced prices. Powder milk packers have not shown any resilience in their attitude on the eve of Ramazan. Instead, makers of Nido have raised the prices as one-kg pack would be available at Rs215 as against the last Ramazan’s price of Rs199. The 400-grams pack would be retailed at Rs92 as compared to Rs88. Everyday one-kg and 400-gram packs would be tagged as Rs205 and Rs92 as against Rs194 and Rs85 respectively.

Producers of Millac milk powder have brought down the rate of 2.5-kg pack at Rs530 as compared to Rs550 of last year while the price of 1.8-kg pack has been increased to Rs400 from Rs385. Millac one-kg pack price of Rs190 would remain unchanged.

According to the new price list, prices of dates show fluctuation. The Muzafati Irani date has been fixed at Rs52 as against Rs55 per kg last year whereas the rate of Zahidi Irani variety reduced to Rs35 from Rs36 per kg. Khajoor Zahidi Basra and Khajoor Begum Makran would be available at last year’s rate of Rs30 and Rs24 per kg respectively.

Khajoor Mix would be dearer by Rs4 as it would now be available at Rs18 as against the previous price of Rs14. Khajoor Dubai would, however, be sold at Rs32, Rs2 less than the last year’s rate.

Importers, wholesalers and stakeholders of pulses have shown flexibility in their attitude by bringing down the rates of various varieties. Rates of gram pulse No.1 and 2 have been slashed to Rs21 and Rs23 per kg respectively as against last year’s Rs33 and Rs30 per kg.

Rates of Kabuli Channa special, No.1, 2 and 3 qualities have been fixed at Rs36, 34 and Rs26 as compared to last year’s Rs 40, 32 and Rs 27 per kg respectively. Black Gram No.1 and 2 would be priced at Rs22 and Rs20 per kg respectively as compared to Rs30 and Rs28 per kg.

PROSECUTION: The city government has delegated additional powers to all the 18 Town Municipal Officers to ensure an effective check on price-hike during Ramazan. They would have judicial powers to prosecute profiteers and penalize them with imprisonment and/or fine, add agencies.

DCO Mir Hussain Ali on Saturday held a meeting with EDO (Enterprise) Raisuddin Paracha. It was attended by all the TMOs and DDOs of the city.

The meeting discussed methodology and suggestions for an appropriate action against profiteering and price-hike.

The meeting decided to set up 40 complaint centres, including one each in every town under the supervision of the concerned TMO.






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