June 02, 2006	Friday	Jumadi-ul-Awwal 5, 1427

KARACHI, June 1: Except for phenomenal increase in poultry rates, the prices of essentials especially of pulses have either remained unchanged or declined during the last one month owing to improved supply in the markets.

The stability in the prices ahead of next year’s budget, to be announced on June 5, is against the old practices of wholesalers and retailers who used to jack up prices before budget in anticipation of changes in the policies and new decisions.

Perhaps the calm situation is because of President Pervez Musharraf’s recent announcement that the government would give subsidy to the consumers in the upcoming budget to check the rising prices of essentials.

Overall consumers’ spending on procuring essentials last month has remained somewhat under control owing to stability and decline in prices of various items.

A price survey from May 1 to June 1 (as shown in the chart) reveals a decline of four to eight per cent in the prices of various pulses owing to various reasons.

A wholesaler and importer of pulses told Dawn that mash prices in the world markets dropped to $610-$620 from $700 per ton in the last month coupled with increase in import of the commodity in the country.

He said an initial supply from the new moong crop from Punjab and Sindh had started arriving while the full crop would reach the market by August pushing the prices downward.

In case of desi chick peas, the crop size is 300,000 tons this year but the country has last year’s carryover stocks of 150,000 tons as against annual consumption of 650,000 tons this year. The price has dropped slightly because of import from Ethopia and Australia.

Import of dal masur from Australia had resulted in decline of its price. It was now selling under cost in the market. In the last two month some 300-400 containers (carrying 25 tons each) of the commodity had arrived.

However, he said that the recent government’s decision to impose 35 per cent regulatory duty on export to pulses might have a sentimental impact on prices but the real reason of price fall was frequent arrival of imported pulses and supply from producing areas.

In case of sugar, the 15 per cent regulatory duty on export to Afghanistan coupled with import of over 550,000 tons white refined sugar by the Trading Corporation of Pakistan so far and around 500,000 tons by the private sector in the last two to three months had made a combined impact on the sugar prices.

The price of live poultry bird had surged to Rs74 from Rs54 per kg, thus making costlier its meat to Rs125 from Rs90 per kg. Farm owners and wholesalers have smelled the change in consumers’ behaviour. The poultry industry is now in a recovery path after three months of depressed sales because of bird flu scare in the country.

Poultry farm owners, who had suffered Rs20bn losses during the last few months, are also recovering by making frequent upward changes in the prices.

In case of fresh milk, all the claims of the city government in bringing out with token system against the profiteers for on spot challan has so far proved only a lip service rather than any practical steps. Owing to dilly-dallying tactics by the city government, consumers are bound to pay higher prices at Rs30 per litre despite a notification of Rs28 per litre issued by the government last month.

Onion price was on the decline because of supply from Punjab and NWFP crops, while exports were also suspended these days. The wholesale price dropped to Rs4 from Rs5.50-6.00 per kg in the last one month.

Consumers bought two varieties of garlic one from China at wholesale price of Rs45-50 per kg and other from Balochistan crop at wholesale rate of Rs30-35 per kg.

Tomato price surged owing to end of Sindh crop and the commodity was arriving from the Punjab crop. Potato was arriving from Punjab’s cold storages.