Free imports fail to bring down prices: Essential items
By Aamir Shafaat Khan
KARACHI, Aug 25: With the Ramazan just a month away falling in October, the government’s efforts to liberalize imports of various essential items have yet to make any impact on the prices of essential items.
The government has focussed its attention on providing relief to the general consumers by liberalizing imports of vegetables and meat from India and other neighbouring countries coupled with cutting withholding tax by four per cent to stabilize prices of pulses in the markets.
But consumers are still looking forward to receiving any benefit in shape of price reduction.
On the other hand, traders, market players, wholesalers and retailers are now flexing their muscles to resort to stockpiling which may gain momentum in September since Ramazan is expected to start from the first week of October.
The City government department, responsible for handling the price rise and profiteering issue, has not called upon any meeting with the retailers, wholesalers and market players yet to take stock of the market situation relating to stocks, price, imports, local crop situation, etc.
The price watchers used to summon the meetings with market players late, which allows vested interests, wholesalers and stockists to play their games, leaving price regulators with no choice but to succumb to their pressure.
Increase in prices of milk, meat, wheat flour, pulses, etc., for the last few years were some of the glaring examples how the government handles the market forces, leaving the consumers at their mercy.
“We are initiating our exercise to check stocks and prices very soon so that we have enough information prior to fixing of prices,” executive district officer, Enterprise and Investment Promotion, Raeesuddin Paracha said.
He said that the department would give advertisement in the newspapers shortly inviting stake holders and market players to reveal their stock positions so that the department could review the situation.
It may be noted here that efforts of the previous city government to bring stability in prices failed to bear any fruit, although they had been given magisterial powers for a brief period to check profiteering. Besides, the officers, who were invested with powers to check prices, became vigilant in initial days but in due course of time they got slow.
Paracha said that the Sindh government had prepared a draft ordinance: “The Price and Profiteering Control Ordinance Sindh 2005” aimed at providing protection to the general public. The draft had been sent to the Law Department, Sindh for vetting so that it could become an Act.
Advisor to Karachi Wholesale Grocers Association (KWGA), Anis Majeed said despite four per cent cut in withholding tax, the pulses prices had not come down because of late decision as the international prices had gone up, which failed to result in price decline.
He said that so far the cut in withholding tax on pulses imports had not made any impact.
As far as Ramazan is concerned, he said that so far the pulses market had been quiet and market players would enter the market from early September to speed up buying for the holy month.
He said that no letter had been received from the City government for pre-Ramazan meeting.
President Falahi Anjuman Wholesale Vegetable Market, Haji Shahjehan said that so far the government had not called upon any meeting for fixing prices of greens during Ramazan.
However, he said that the government’s decision to allow import of vegetables from India had failed to bring any stability in prices as the decision had been taken very late.
Giving an example, he said that importers had brought 70,000-80,000 tons of Indian onion two months back despite repeated request to the government to cut duties and taxes on imports. As a result, costly Indian onion had landed into Pakistan ahead of decision of liberalising imports from India through land routes. Till the imports were liberalised, local crop of Balochistan had started while Sindh crop would arrive by September end.
He said that there was hardly any significant quantity of potato had arrived particularly from India because the country had enough stocks from the cold storage of Punjab. Even the rate on which a meagre quantity of Indian potato arrived (in two to three containers) was not workable.
He said that currently potato from Balochistan crop is also arriving and selling at Rs600 per 40 kg. The new crop from Punjab would start from November/ December. Potato from the cold storages is selling at s 400-500 per 40 kg.
In beef and mutton, consumers, already burdened with huge prices, have not gained any benefit from the mutton imports from India as the caterers and hoteliers are reported to have grabbed the entire red meat before it reaches to the common man.
Meat retailers said that consumers would be benefited when live animals would arrive from India as majority of people prefer to buy fresh meat instead of frozen meat arriving from India.
