Retailers stop lifting pulses: Wholesalers in a fix
By Aamir Shafaat Khan
KARACHI, June 7: Retailers and buyers have suspended lifting of pulses from the wholesale market in anticipation of a fall in prices after the government announced to provide subsidy to commercial importers of pulses in the budget for 2006-07.
On the other hand, wholesalers have also stopped lifting pulses stock from the port which arrived before and after the budget, as they are waiting for the government notification regarding the subsidy to the importers.
“It is not clear whether the government will provide subsidy to future import orders of pulses or it will be applicable to the import already awaiting clearance from the port,” said Anis Majeed, adviser to the Karachi Wholesale Grocers Association.
The wholesale market and even the importers are in a fix as to why the government is taking time in issuing the notification. Even buyers of pulses at the wholesale market are curious and enquiring about the decline in rates after the budgetary decision, he said.
About the decline in prices after the subsidy, Mr Majeed says it depends on the government. “It could be Rs2-5 depending on the allocation of subsidy amount for pulses import.”
Wholesalers have displayed the pre-budget rates at their shops but buyers are not ready to lift the stock at higher rates.
He said the government should act immediately in clearing the market confusion over the delay in implementation of SRO regarding subsidy so that consumers could get instant benefit of the government decision.
On the other hand, utility stores have reduced rates of various pulses by Rs10 per kg after the budget. However, the wholesalers appear least bothered over the reduction in rates at the government stores.
Mr Majeed said only five per cent people out of country’s total population buy pulses and other daily essentials from the utility stores, with a pain of standing in long queues outside the utility stores, especially for sugar. He added that 1,100 stores all over the country were not enough to meet the demand of a population of over 160 million.
“Consumers, who buy from retail and wholesale outlets, are waiting for the price cut in the open markets. Any reduction in prices of pulses at the retail side will be the real benefit from the government,” Mr Majeed said.
He said importers were still opening L/Cs for future imports of pulses, as the commodity will take more than one month to reach Pakistan.
