March 07, 2007	Wednesday	Safar 17, 1428

KARACHI, March 6: Consumers having a bitter experience of waiting in long queues for buying subsidised sugar from the utility stores last year, are likely to face the similar hardship because of price gap in ghee and cooking oil at these outlets and the open market.

Price conscious consumers will throng the stores from March 10 for buying subsidised ghee and cooking oil to grab the Rs67.30 per kg/liter pouch of the commodity. In sharp contrast, medium and high quality brands in the markets are priced between Rs75-90. A number of companies also offer one kg/liter ghee and cooking pouch at Rs67-71 for a particular segment of the society.

Last year, there was a big price difference in sugar available at retail outlets (Rs36-40 per kg) as compared with utility stores’ price of Rs27.50 per kg, which created a rumpus at the stores. Currently, sugar is priced at Rs26 per kg at the utility stores while it is tagged at Rs30 per kg at retail markets.

To control the situation last year, the management of the utility stores had come out with a policy of bounding consumers to buy essential items first to become eligible for two kg bag of sugar. However, the policy was widely criticised by the masses.

Market sources said that the government was reported to have selected a branded company (for providing 20,000 tons of ghee/cooking oil per month) with a subsidy of Rs6 per kg so that consumers could have the commodity at Rs67.30 per liter/kg from its current rate of Rs73 per kg/liter in the market.

They said that the government should have selected all the running products of small and big companies for giving subsidy of Rs6 per kg so that majority of the consumers could have a wider choice in selecting the brands at the stores.

Sources said that Chairman of Pakistan Vanaspati Manufacturers Association (PVMA) Amjad Rashid had taken up the case with the ministries of industry and finance as to why only one company had been selected to fulfill the needs of the consumers.

They added that the product, which had been selected by the government, had not been very popular among the masses. The PVMA chief had also informed the ministries that the selected product actually carries weight of 900 grams instead of one kg (1,000 grams) and it is not a popular brand like Dalda, Habib, Tullo, Sufi, Meezan etc.

He said that 20,000 tons per month sales come to only 12 per cent of total ghee and cooking oil sales of over 2.5 million tons per annum. He added that only few customers could avail the benefit of getting cheaper ghee/cooking oil at the stores.

General Secretary Karachi Retail Grocers Group (KRGG) Farid Qureishi said that the government will again mess up market scenario by providing subsidised commodity in only 800 utility stores all over the country with big price gap as compared to rates prevailing in the markets.

He said he was not aware of the ‘Mun Pasand’ brand selected for sale at the utility stores. In case it exists then it is surely not a familiar household name. However, he was also conscious over the quality of the subsidised brand to be sold at the utility stores.

He added that in Karachi alone – retail shops exceed over 20,000 from where majority of buying needs of consumers are met. How many consumers will benefit from the subsidised ghee and cooking oil, which will be available at only 800 stores all over the country, he asked. “The government should think of giving incentives and subsidies on all the running products that could cater the needs of entire masses and not of a small fraction of the society through utility stores,” he said.

Zonal Manager Utility Stores Corporation (USC), Masood Alam Niazi said that the government had engaged Dalda Foods for supplying economy pack of one kg/liter under the name of ‘Mun Pasand’. However, he was of the view that this brand is especially being made by Dalda for utility stores and is not available in the markets.

He ruled out the possibility of any sugar like crisis outside the stores from March 10 because of big price difference. “I think people are very brand conscious in ghee and cooking oil. Besides, ghee and cooking oil consumption is also low as compared to sugar,” he added.

He said that the government was actually catering to the need of common man in providing cheap ghee and cooking oil. On the other hand, upper class does not have any money problem in buying costlier products. However, he said that the quality of ‘Man Pasand’ will be at par with other leading ghee packers.

A total of 800 regular utility stores exist in the country. Besides, around 70 franchise stores are also in operation, which had been issued licenses. There are also 100 mobile stores all over the country.

“Around 30-40 per cent of the population now depends on utility stores for their monthly and daily purchasing,” he claimed.