KARACHI, June 9: After an increase in wholesale prices of flour and sugar, rates of various pulses at the wholesale level are also on the rise following the announcement of budget for 2005-06.

The government has not made any change in the customs duty on import of pulses in the budget, but retailers and wholesalers describe the increase on their own way.

The price of masoor surged to Rs38 from Rs37 per kg at the wholesale side, while its whole and washed rates rose to Rs41 and Rs37, respectively, from Rs40 and Rs34 per kg.

Similarly, the price of moong increased to Rs35 from Rs34. The mash washed price went up to Rs37 from Rs36 per kg. The rate of gram pulse rose to Rs22 from Rs20 per kg.

Karachi Retail Grocers Group General-Secretary Farid Qureishi said he felt the price difference at the wholesale level of Rs1-2 per kg after the budget, as the rates were intact ahead of the budget announcement.

He said the retailers had not yet made effective the new rates at their shops after a slight increase in the wholesale price, but added that they would start charging the increased rates after procuring the commodity at higher rates from the wholesale market in coming days.

Adviser to the Karachi Wholesaler Grocers Association Anis Majeed tried to defend the situation by saying that the new budget had nothing to do with the increase in wholesale prices of pulses since the government did not announced any decrease or increase in the import duty of pulses.

He said that prices pulses at the wholesale market had been under pressure ahead of the budget announcement because of an increase in rates at the international market. Besides, he said, the export of some pulses had also made some impact at the wholesale market. He, however, admitted that pulses prices had been on the rise in the local market.

He said gram pulse, after a bumper crop prospect of one million tons, was being exported, and market dealers expected to export 200,000-250,000 tons this season. The rest of the quantity is sufficient for the local consumption.

The price of gram pulse declined to Rs25 from Rs30 on June 1 and further plunged to Rs20 per kg at the wholesale level. However, its price again started moving up.

Mr Majeed said moong, from the local crop, was being exported to India, Bangladesh and Sri Lanka and added that an estimated 10,000-12,000 tons had been exported to these countries.

The mash whole price in Burma has surged to $440 from $390 a ton in the last two weeks, while masoor, arriving from India, now costs $510 as compared to $480 a ton.

In the absence of any check on price movements, wholesalers, retailers and brokers enjoy free-hand to charge prices on their own, while departments of federal and provincial governments are still not feeling any responsibility in keeping a vigil on the price fluctuation in the markets and ultimately consumers turn out to be main sufferers of rising prices.

Market sources said that following the hike in wholesale price of flour, the Sindh food department had summoned a meeting of flour millers on Friday to check out stock situation of the commodity lying with the mills.