KARACHI, Oct 20: The impact of earthquake was seriously felt in commodity markets in Karachi where it was observed that Karachiites were not holding ‘Iftar’ parties which significantly dropped the consumption of pulses and spices, resulting in a 50 per cent decline in imports of these commodities.
However, the earthquake increased the demand for sugar, pushing its prices higher by Rs1.5 to Rs2 per kg at the wholesale level.
Pakistan Commodity Importers Association Chairman Rais Tar Mohammad said that instead of an increase in the demand for pulses and spices during Ramazan, their sales had dropped significantly.
“The people of Karachi are shocked and disappointed with the disastrous effect of the earthquake. They are not celebrating Ramazan as they used to do traditionally by holding Iftar parties throughout the holy month,” Mr Rais said, adding that this resulted in a sharp decline in the consumption of pulses and spices. Neither the government nor the private sector companies are holding Iftar parties, while general public is avoiding holding such traditional parties.
He said that 15 million people, almost 10 per cent of the population of Pakistan, had higher consumption level compared to other parts of the country. Karachi supplies 70 per cent of these commodities to the rest of the country.
Along with general public and companies, social organizations, political parties, NGOs, elected members of national and provincial assemblies, ministers, and high officials used to hold Iftar parties that certainly increase the consumption level of pulses, spices and other commodities many times compared to other months. All political parties and social organizations are busy in helping the earthquake victims and collecting donations to facilitate them. Commodity sellers say it seems that there will be no Iftar parties in the next half of this Ramazan.
“Imports of pulses and spices dropped at least by 50 per cent,” said Mr Rais, who estimates that Karachi consumes up to 25 per cent of total consumption of these items.
The earthquake did not affect the prices of these commodities, but sugar prices went up by Rs1.5 to Rs2 per kg at the wholesale level. Sugar is being purchased in bulk for onward supply to the quake-hit areas, but other factors causing hike in the prices were stoppage of sugar import and short supply of the commodity.
The government in March and April had withdrawn import duty and withholding tax on sugar to meet the shortage and bring down the prices. The decision produced positive results. However, Mr Rais said as the Trading Corporation of Pakistan sold its stocks for Rs25 per kg, this opened windows for others to demand higher prices.
He suggested that the TCP should sell its stocks at Rs21 per kg, as it bought them at Rs15-16 per kg in December and January. “This could bring the sugar prices down which have touched Rs28 per kg.”
Other than commodities, markets of warm clothes, blankets and dresses have also received some effect of the earthquake and their prices are on the rise.
