KARACHI, Oct 2: A couple of weeks before the holy month of Ramazan, the city government had resolved to deal profiteers and profiteering with an iron hand to maintain prices of all essential commodities at a reasonable level.
However, retailers appeared defiant and despite a vigorous campaign by the city government, besides the heavy fines and jail terms awarded by its officials with magisterial powers, they have been fleecing consumers at their will, rendering every move to control prices ineffective.
Like the Ramazans of the past, the holy month this year too has been made miserable for people from the middle class and low-income group who are charged exorbitantly for almost all items of daily use. The repeated assurances by the city government with regard to maintaining prices have proved nothing but eyewash.
The city government’s controller general of prices has asked traders, wholesalers, retailers and vendors to display the official price list prominently at their outlets but consumers would not find the same anywhere as it is either not available with them or not displayed deliberately. Not a single item of daily use is selling at the rate prescribed by the city government.
A market survey conducted by Dawn over the first week of Ramazan reveals that prices of almost all essential items have gone up by 30 to 50 per cent. Prices of some items have even increased by 100 per cent.
Prices of fruits, an essential item for Iftari, show an increase of 30-50 per cent as against those prescribed in the city government’s list, and 40-50 per cent higher than those prevailed a couple of weeks before Ramazan.
For instance, grapes are selling at Rs120 per kg in retail as against the official price of Rs55 per kg. Apple, banana, watermelon, melon, pomegranate, etc., sell at a rate much higher than their official rates.
Similarly, retailers sell vegetables at their own rates ignoring those prescribed by the city government, although there appears no dearth of any vegetable at the moment. The rates quoted by retailers appeared to be 30-40 per cent higher than the official rates.
Chicken, which was available at Rs86 per kg just a week before Ramazan, is now selling at Rs104 per kg. Chicken meat is retailed at Rs185 as against Rs158 per kg some two weeks back.
Poultry rates are fixed on a daily basis by two associations — the Pakistan Poultry Association and the Karachi Wholesalers Poultry Association — and the city government has not been able to bring them under its control in respect of regulating prices.
However, its has succeeded in bringing down the price of beef by Rs5 per kg and mutton by Rs20 per kg as against the pre-Ramazan rates. Beef sells at Rs135 and mutton at Rs240, although people in some localities complain that meat-sellers are charging Rs260 per kg for mutton.
There has been no reduction in the prices of pulses, sugar, flour, besan and other commodities in Ramazan as retailers have refused to comply with the official price list, contending that they were receiving supplies at higher rates from the wholesalers.
“The price-hike in Ramazan is not because of a short supply or a sudden surge in demand. It is entirely because of hoarding for profit,” some consumers in markets observed.
“The government has made no concerted effort at any level to control prices. Raids on a few wholesale and retail outlets and imposing penalties on profiteers may not bring about any change in retailers’ attitude,” some other consumers remarked.
Interestingly, wholesalers and retailers always blame each other for the price hike in Ramazan. While wholesalers accuse retailers of indulging in profiteering taking advantage of increasing demand of various commodities in the holy month, the retailers argue that wholesalers would push prices up in Ramazan.
Some relief to consumers is offered by the utility stores but at most of them, consumers experience humiliation. People in large numbers, queuing up for hours amid suffocating heat and humid conditions, outside every utility store in the city is a common scene. They have to endure all this to buy sugar, cooking oil, pulses, etc., at subsidised rates because they cannot afford the prices in the market, even those prescribed by the city government. Operators of these stores deal their consumers harshly as if they are beggars. Exchange of hot words between them is a common sight at almost every utility store.
One painful aspect is that there is no government check on the prices of the products marketed by multinationals or big national companies. Prices of these products, like bread, packed milk, tea, etc., are raised by 10 to 15 per cent twice or even thrice a year. Just a week before Ramazan, prices of these products had been increased exorbitantly and there was no reaction from the government.
“If the fresh milk sellers raise the prices by Rs2 per litre, it makes an issue and the traders have to face the music, but what about these multinationals which would increase prices by Rs5 to Rs20 per pack at their will?,” asked an angry milk-seller.
Before Ramazan, the city government had held meetings with wholesalers, retailers and consumer protection organisations to discuss the rising prices of essential items during the holy month. However, the whole exercise could not just stop the genie of price-hike coming out of the bottle.
The ground realities tell something different. Everybody knows how much the city government or other stakeholders care about the majority of cash-starved public who are left at the mercy of greedy wholesalers and retailers. And the promises made to the public are yet to be materialised.
The price control department of the city government usually wakes up from a deep slumber very late. Although the department has been given magisterial powers to control prices, the wholesalers and the retailers continue to fleece consumers without fear of punishment.
Prime Minister Shaukat Aziz has announced a Ramazan package that offers 10 per cent discount on edible items, and said the government will provide Rs13 billion subsidy to keep the prices of essential items stable.
The prime minister has also directed all chief ministers to ensure a smooth supply of essential items and take effective administrative measures to keep prices under control during Ramazan.
“We are short of manpower. We cannot depute our men in every corner and street to keep a check on profiteers. It is very hard to cover all localities of the mega city. When we conduct raids, fruit and vegetable sellers would flee leaving behind their stalls to escape action. We are told that they have gone to offer prayers,” say officials at the city government.
One official, requesting anonymity, told Dawn: “Although we have picked up many people and fined them for overcharging, we have failed to curb price hike. It seems that profiteers have one agenda -- fleece consumers --, and we are helpless,” he admitted.
