KARACHI: Sindh govt, CDGK have no powers to fix prices
By Azizullah Sharif
KARACHI, April 8: Both the city and Sindh governments have been stripped of their powers to fix prices of essential commodities, it was reliably learnt on Thursday.
Such a decision on the part of the federal government has rendered both the city and Sindh governments helpless in not only taking any action for fixing the wholesale or even retail prices of essential commodities, but has even crippled them with regard to initiating any action for stabilizing prices of such essential commodities, sources remarked.
The well-placed sources in the CDGK told Dawn on the condition on anonymity that the federal ministry of industries through a letter (No15(35)/97-V dated 16.10.2004), recently informed that all items in the schedule of Profiteering and Hoarding Act have been taken out from the purview of both the district and provincial governments.
He said though the wholesale prices of commodities, like wheat flour, sugar, meat, oil, etc. are fixed by provincial/federal governments, the city government or its controller general of prices can fix the retail prices of these commodities by adding a reasonable margin (if required or justified) for the retailers which may vary from five per cent to 10 per cent of the wholesale prices.
Asked what measures are being taken by the CDGK to stabilize prices of milk which was being sold for Rs 25 and 28 in the city as against its official price of Rs 22 per litre, the sources said that the CDGK in the light of suggestions put forth by a committee that was set up by the City Nazim, has recently recommended to the government to approve the wholesale and retail prices of milk at Rs 22.50 and 25 per litre, respectively.
Conceding that milk was being sold throughout the country at a price ranging between Rs 22 and 24 per litre, the sources pointed out that details collected from the country indicate that in Hyderabad the milk was being sold at Rs 20 and 22 per litre; in Lahore between Rs 22 and 24 per litre; in Islamabad at Rs 24 per litre and in smaller and bigger towns and cities it was being sold at about Rs 20 per litre.
Asked why the CDGK has recommended retail price of milk at a higher side (Rs 25 per litre) as against the commodity’s prevailing prices in the various major cities of the country, they said the City Nazim had formed two committees – one headed by the City Council’s senior presiding officer, Muslim Pervaiz and another by the CDGK’s agricultural department’s executive district officer, Mohammad Amin Khaskheli. The second committee, after having a detailed deliberation and survey of cattle colonies, in its report had stated that the dairy farmers’ demand for increase in milk prices seems to be justified in the light of increase in price of inputs used in milk industry which include prices of POL and other required items.
The committee has suggested that the wholesale price of milk within the limits of city district government may be fixed at Rs 22.50 per litre and that of its retail price at Rs 25 per litre, they added.
In this regard, the sources pointed out that the price of milk was last fixed in September, 2003 at Rs 22 per litre and incidentally it was one and the same as fixed in 1999 although at that time the price was apparently fixed on higher side owing to pressure by dairy farmers.
The sources admitted that though the City Nazim had launched a campaign against the milk profiteers under Prevention of Profiteering and Hoarding Act, 1977, shortly after the milk sellers increased milk prices to Rs 28 per litre from Feb 20, the drive against milk profiteers could not be pursued in an effective manner in the absence of magisterial powers with the CDGK officers.
However, in view of the seriousness of the issue and owing to public resentment over milk prices, the CDGK had started taking action against milk profiteers by imposing a ban under Section 144 CrPC for selling milk on higher prices and within a couple of weeks, a total of 186 profiteers were challaned under Section 188 in different parts of the city, besides, 1,838 shopkeepers were sternly warned.
