Increase in vegetable prices dismissed as seasonal
By Khaleeq Kiani
ISLAMABAD, Oct 31: The government on Friday noted that ghee prices had increased by about 14 per cent during the month of October but “expressed satisfaction” over what it saw as the “falling prices” of some other essential commodities.
The Economic Coordination Committee (ECC) of the cabinet, presided over by Finance Minister Shaukat Aziz, dismissed as “seasonal” the sharp increase in the prices of tomatoes, potatoes and onions.
The meeting also expressed satisfaction over the stable prices of kerosene oil but made no mention of the increase in the prices of diesel and petrol made for the third consecutive fortnight on Friday.
The ECC arrived at these satisfactory conclusions over what it claimed the reduction or stability in the prices despite the fact that reports of sudden rises in the prices of essential commodities in the country with the start of Ramazan keep pouring in.
The ECC expressed concern over the rising price of ghee but attributed it to the international market prices. The meeting noted with concern the continuing rise in the price of loose ghee (by 2.2 per cent) after palm oil prices shot up in the international market.
The palm oil prices have gone up from $439 at the start of October to $510 per ton in its third week. The meeting expected that the situation would improve during the next week and decided to stay vigilant to take stabilization measures.
The meeting noted with satisfaction that prices of atta have fallen by 1.49 per cent compared to the previous week. A number of other items whose consumption rises in Ramazan such as chicken, eggs, gram pulse and sugar continued to experience a price fall, the ECC claimed. The prices of prepared tea, cooked beef and cooked dal remained at the same level as before Ramazan.
The sources said prices of kerosene oil were stable because of oil refineries’ preference to produce kerosene over JP-4 owing to higher production of furnace oil.
Describing as “seasonal rises” in the prices of tomatoes, potatoes and onions, the ECC expected these prices to stabilize by the middle of November.
The ECC was informed that sensitive price indicator for low income group, in overall terms, has increased to 0.65 per cent on October 30 from 0.57 per cent on October 23. It was claimed that it was mainly due to “seasonal price rise in onion”.
The meeting also expressed satisfaction over sufficient stocks of wheat, fertilizer, sugar, oil and ghee.
