September 16, 2006	Saturday	Sha'aban 22, 1427

KARACHI, Sept 15: There has been no let-up in the rush of buyers for sugar and pulses at the utility stores and the situation may get out of control in case the government comes out with some relief package for Ramazan and the gap between the market and utility stores’ rates further inch up, especially in pulses.

Recent increase in prices of pulses ahead of Ramazan has further diverted the buyers towards the utility stores. Buyers think that it is better to get products at subsidised rates instead of paying huge prices ahead of Ramazan in retail markets.

In almost all the areas of Karachi, consumers are seen in long queues at utility stores to get pulses and sugar at reduced rates. In case of sugar many consumers after standing in long queues for an hour or more, return empty handed when daily quota of sugar at the stores exhausts.

Perhaps the lifting of condition of buying sugar with other commodities by the USC has lured more buyers towards the stores. However, in some areas, store officials are bent upon asking the consumers to buy other things first and then buy sugar.

Zonal Manager Utility Stores Corporation (USC), Masood Alam Niazi did not agree that buyers were still facing a cumbersome experience outside the official outlets. Situation is well under control and consumers are free to buy two to five kg of sugar without buying other commodities, he added.However, he said that the government will come out with a relief package by increasing the number of items for sale at the stores during Ramazan and these items will have a price difference compared to the regular markets.

He did not agree that the government was considering giving any further subsidy on pulses and sugar as they are already selling at much reduced rates compared to the local markets.

He said that in case of sugar the government had already increased the monthly quota to USC to 47,000 tons from 32,000 tons for September and October to meet the rising demand of the commodity in the holy month. The monthly sugar quota for USC was 11,000 tons in January 2006.

He said that the subsidised commodities’ share in overall sales of items at utility stores range between 55-60 per cent, while the rest of the sales comprises of non-subsidised items. Sugar excels in terms of higher sales as compared to pulses.

He said Karachi had now 54 stores as compared to 38 stores in February, while Hyderabad, Quetta and Sukkur have 30, 32 and 31 stores, respectively.

Managing Director USC Brig (retd) Hafeez Ahmed told Dawn the rush at the utility stores will come under control when the franchise stores will be opened all over the country.

He said some 6,300 franchise stores will be opened by December 2007 all over the country out of which 2,500-3,000 are expected to become operational by December 2006 in the first phase.

Hafeez said that the USC had started distributing applications forms from September 11 and the process will conclude on September 26. He added that Rs100,000 loan will be offered for opening mobile franchise outlets and Rs200,000-300,000 will be provided for opening franchise stores through banks for persons aged between 18 and 40.

Meanwhile, the city government has notified prices of pulses for Ramazan at rates less than the prevailing market rates but the wholesalers are not ready to sell them at control rates. The wholesalers have put on display banners at the wholesale market in Jodia Bazar from Thursday, which read: “Traders reject the city government prices for pulses and rice.”

Advisor to Karachi Wholesales’ Grocers Group (KWGG), Anis Majeed said that the traders had stopped lifting gram pulse from Punjab areas, which are main source of supply to Karachi. The arrival rate of gram pulse from Punjab is Rs42 per kg and then it is sold to retailers at Rs44 per kg. Surprisingly, the government has fixed the rate at Rs38 per kg at the wholesale level.

Gram pulse is a hot item for Ramazan whose consumption becomes double to 125,000 tons in the holy month as compared to 62,500 tons in a normal month, he said.

In July gram pulse was available at Rs38-40 per kg as compared to current rate of Rs48-52 per kg. At utility stores it is selling at subsidised rate of Rs30 per kg. Mash washed, moong washed and masur washed are sold at Rs58, Rs53 and Rs31 per kg respectively, at the utility stores, while in local markets these are priced at Rs60, Rs58 and Rs36 per kg, respectively.

Meanwhile, executive district officer Enterprise and Investment Promotion Syed Abid Ali Shah has reiterated that the government is still firm on fixing prices for pulses and traders will have to face legal action in case they are found overcharging than the official price list.

In case the row between the city government and KWGA over pulses does not come to an end the utility stores will see a huge rush of buyers in the month of Ramazan.