THE common man is groaning under the unbridled rising cost of living. For him, the basic necessities of life are more important than the long-term strategy of development. Unless the government gives due priority to this aspect and initiate effective steps to arrest the rising cost of living, it can develop into a political tsunami.
The shortcomings of the price committee constituted by the prime minister have been rightly identified. In this committee, economists and representatives of consumer watch bodies are conspicuous by their absence. Also this committee has not been provided any means to ensure price stabilization or powers to take action against stockists, ‘arthis; and to demolish the cartel responsible for hoarding, black marketing and unethical trade practices.
The trade mafia is free to frustrate the efforts of the government which is trying to balance the supply and demand through import. The outlets of utility stores and canteen stores departments through providing the essential commodities to the public on reduced prices is just a drop in the ocean. No effective and well coordinated infrastructure is in place to collect, collate and disseminate the supply and demand position and help the provincial and city governments in determining a realistic price level.
Also the devolution of legal powers of price control and its enforcement through ‘controller of prices’ having legal powers at the district level has not been specified. This vacuum provides a clear field to hoarders and middle men to aggravate the situation.
During 1988, with a view to create an effective price control body at the provincial level, the then Sindh government took a wise step by creating a bureau of supply and prices (BSP) by placing Sindh Price Control Act, Agriculture Produce Market Act, Sindh Registration of Godown/ Ware Houses Act and Weight & Measures Act under its jurisdiction for effective coordination and enforcement. The director- general BSP was notified as ‘controller general of prices’ and the Deputy Commissioner having magisterial powers was asked to supervise price control in his district.
The BSP put in place a well-coordinated machinery for collection, collation and dissemination of market information in respect of essential commodities. It laid down policy and guide lines for price analysis and formula for profit margins at whole sale, middle men and retail levels for the guidance to districts. BSP discouraged practices of hoarding, black-marketing and artificial shortages through enforcement of the relevant laws.
It also performed the important function of a ‘clearing house’ of national market information system— a component of the United Nations Project. For this purpose, the BSP through its market committees and inspectors collected the wholesale price and stock position from all districts. The information so received was compared with the price received from agriculture livestock marketing and grading department and the Bureaus of Statistics. After an analysis, the same was transmitted to Islamabad for better inter provincial coordination.
To reduce malpractices of ‘arthis’, APM Act was amended to make the market committee vibrant through equitable representation of growers, traders and consumers. Agricultural mandis having adequate infra structure for grading, weighing and open auction were established. New mandis at agricultural centres were developed. Thus trading was regulated.
The BSP also proposed enactment of a law for consumer protection. The draft of the Consumer Protection Act was sent to the federal government for examination by the cabinet. Many provinces have enacted Consumer Price Laws. This duly amended law is awaiting enactment in Sindh.
To further ease the price situation, BSP organized ‘Bachat Bazars’ to encourage growers and small traders to bring their products for sale on reduced prices by saving expenditure on overheads and taxes, etc. As long as these bazars and food/vegetable markets remained under the control of BSP, there was a visible stabilization effect on the prices of consumer items. So the unethical traders, in tandem with corrupt functionaries started a campaign of vilification against BSP. As a first step, most inefficient, corrupt and unwanted officers were injected in the organization. This retarded its effectiveness. Consequently, under the pretext of streamlining, BSP was dissolved.
Under the devolution plan, the city functionaries were neither provided with the ability of collection and analysis of the supply and demand situation in market nor they had the capability of price analysis and its fixation. The legal authority of ‘controller of prices to check profiteers was also not fully devolved. This state of affairs gave a free hand to exploiters. In their enthusiasm to generate income for development purposes, the City Government, functionaries and other land-owning bodies started auctioning ‘Bachat Bazars’ at huge amounts.
In turn, the organizers of such ‘bazars’ increased rents of stall holders who passed their burden on to consumers by increasing their prices. Since the land owning bodies have no legal powers to control prices, the idea behind ‘Bachat Bazars’ was corrupted. Consequently, unbridled ‘Bachat Bazars’ mushroomed and Karachi boasted of having over 100 such Bazars upon open plots earmarked for sports and parks, thus chocking the city lungs.
As a further set back to the easing of price situation, the City Government responding to the demand of the public for restoration of play grounds and parks closed down many ‘ Bachat Bazars.’ The ‘thekedars’ of such bazars in turn started encroaching upon spaces along road side, resulting in traffic congestion. The City Government also launched campaigns to clear roads and pavements occupied by vendors without planning to provide them alternative places for earning their livelihood.
Therefore such encroachments reappeared a few days after every cleaning operation. This happened with the connivance of the police under the ‘bhatta system’.
Now that the government has taken note of the prices spiral which is spinning out of control, the committee constituted by the prime minister will be well advised to look into the possibility of:
At the federal and provincial Govt level, a vibrant organization may be created to watch the supply and demand situation and pass on the information simultaneously to all market centres.
Creating a body like BSP in all the provinces to discipline and check the unbridled spiral in prices of consumer items.
The City Government be provided the magisterial and price fixation power. Auctioning of Batchat Bazar be discouraged.
Steps be taken to move godowns hidden in the thickly populated areas of Karachi market centres and for effective check on the declaration of stock of essential commodities and its timely dissemination to market information centre.
