KARACHI: Exorbitant hike in prices ahead of Ramazan
By Aamir Shafaat Khan
KARACHI, Sept 7: Traders and manufacturers have pushed up the rates of essential commodities exorbitantly in order to gain an upper hand in their negotiations with the city government with regard to special prices for Ramazan.
The gradual but constant increase in prices of the items of daily use has been resorted to since April and the practice is feared to be continued until the city government succeeds in finalising and publicising the price list for the holy month.
As usual, consumers have literally suffered owing to the manipulation by the market players dealing in various essential commodities, as well as inefficiency of the price regulators, who are supposed to monitor and check prices ahead of Ramazan.
The Enterprise and Investment Promotion department of the city government is busy holding meetings with the market players to finalise the price list for Ramazan. It has already been decided that EDO and DDOs of Revenue department, mukhtiarkars and assistant mukhtiarkars, who have been delegated magisterial powers in July, would be assigned the task of checking profiteering and overcharging.
However, the revenue officials, whose number may be around 70, have not done their homework for the planned campaign. Despite having magisterial powers since July, they appeared inactive while profiteers have been fleecing consumers for months.
In almost all Islamic countries of the world, major companies offer big cuts, incentives and even gifts on the eve of Ramazan. However, in Pakistan, the situation is totally different. It has been a practice on the part of manufacturers and traders of the much needed consumer items that prices be pushed up to a maximum level till the advent of Ramazan and offer a negligible discount valid only for the holy month.
A flashback of price-hike ahead of Ramazan reveals that the prices of pulses had remained under pressure because of costlier imports and very low local production. Gram pulse now sells at Rs47-48 per kg compared to Rs44 on Sept 1, Rs42 until Aug 1 and Rs34 in March. Baisan is selling at Rs48 per kg as compared to Rs44 on Sept 1 and Rs30 in April. Moong sells at Rs70 per kg as compared to Rs68 on Sept 1 and Rs65 on Aug 1. Masur sells at Rs38 per kg as against Rs32 on Sept 1. Mash price jumped to Rs65 per kg from Rs60 on Sept 1. Black gram (kala chana) is now selling at Rs45-46 per kg as compared to Rs40 on Sept 1 and Rs38 on Aug 1.
Because of the increase in the price of a 100-kg bag of wheat in July, atta (No.2.5) now sells at Rs15 and atta (fine) at Rs16 per kg, dearer by one rupee per kg as against their previous prices. Same is the case of chakki atta and Ashrafi brand atta. As a result, some leading flour millers, who also operate bread industries, have raised prices of bread and other products to match the percentage of the increase.
Branded ghee and cooking oil have also become costlier. For example, Habib 2.5 kg tin is now priced at Rs214 as against the previous rate of Rs205 while its five-kg tin is available at Rs415 as compared to Rs395. Other packers have also raised the prices in the same manner. The 16-kg ghee and oil producers have already enhanced the rate to Rs890-900 as compared to Rs800 in early August.
Red chilly (small) was priced at Rs45 per kg in April but the price has been doubled since Sept 1.
Milk traders had increased the rates of fresh milk from Rs28 to Rs30 per litre and yogurt from Rs40 to Rs44 per kg a few months back without the consent of the city government. But the authorities concerned have not taken any action against them so far.
The city government had issued a notification in the third week of April asking milk sellers to maintain the fresh milk retail price at Rs28 per litre. Over the past five months, it has held a number of meetings with dairy farmers, retailers and wholesalers in this regard but without any positive outcome. However, the milk traders have decided not to raise the prices till the end of Ramazan. A Rs2 per litre hike in milk price has been planned to be effected after the holy month.
In April, leading tea packers had come out with a price-hike by seven to eight per cent on all brands owing to the drought in Kenya, which caters to Pakistan’s 50 per cent tea requirement. Last month, the local tea packers had further raised the prices by the same percentage. For instance, Yellow Label (200 grams) was priced at Rs52 in April as compared to the current rate of Rs68, while Tapal Danedar (200 grams) is now priced at Rs59 as compared to Rs52 in April. Supreme 250 gram pack is now available at Rs70 as compared to Rs62 in April.
Meat merchants have offered a Rs5-10 per kg discount on mutton and beef during Ramazan when they met the city government officials concerned on Wednesday.
General Secretary of the Meat Merchants Welfare Association Iqbal Qureishi said that he, along with a delegation, had offered a reduction of Rs10 per kg on veil and mutton meat and Rs5 per kg on buffalo and cow meat for Ramazan. He, however, warned that retailers would stop selling meat if the city government tried to force them to offer further cuts.
At present, meat retailers have been charging Rs260-270 per kg for mutton as compared to Rs240-250 per kg in May. Beef with bones is priced at Rs140 as compared to Rs160 per kg in May. Beef boneless sells at Rs170-180 per kg as against Rs160 in May.
Chicken dealers have also offered Rs10 per kg discount to consumers. Poultry bird was priced at Rs74 per kg in July but now it is selling at Rs92 per kg. Chicken meat sells at Rs165 per kg as compared to Rs125 in July.
