KARACHI, March 8: The wholesale rates of some pulses and rice have fallen in the last few days by Rs5-10 and Rs2-5 per kg, respectively, but consumers are still paying higher prices at the retail stage.

It has been a habit of retailers to delay passing the impact of rates reduced at the wholesale stage.

Retailers increase prices swiftly at the very first signal of hike at the wholesale. This behavior was demonstrated in the last week of February as several commodities became dearer in the retail market because there was an upward pressure on prices at the wholesale stage.

But now when the wholesale rates have declined the retailers are not ready to share this benefit with the consumers and continue charging higher rates.

The retailers argue that consumers will witness the decline in rice and pulses rates in a week time as they have procured these commodities at higher rates. However, retailers behave differently when the rates decline.

Consumers, who usually do not monitor the fluctuations in the wholesale rates in Jodia Bazar and other wholesale markets, become the victim of tongue-twisting techniques of the retailers.

Retailers usually try to avoid offering the actual wholesale rates. For example, according to a market watcher, the rates of gram pulse have dipped to Rs40 from Rs48 per kg in wholesale in the last two days but retailers are still charging Rs50 per kg. A wholesaler said that gram pulse was selling at Rs35-36 per kg at the wholesale.

Similarly, he said the wholesale rate of masur is quoted at Rs38 after dropping from Rs42 but wholesalers claim that it is tagged at Rs34-36 per kg. However, retailers are still charging Rs40 per kg.

The moong wholesale rates have fallen to Rs50 from Rs54 per kg but wholesalers said that the rates actually hover between Rs45-46 per kg and retailers are still demanding Rs60 per kg.

The wholesale rate of mash has declined to Rs52 from Rs60 but the wholesalers said that its actual wholesale rate is Rs48 per kg and consumers are still paying Rs 55 per kg. Black gram rate is being quoted at Rs24 after declining from Rs40 but retailers are pocketing over Rs42 per kg from consumers.

“Consumers will see the decline in pulses rates in the next one week,” general secretary Karachi Retail Grocers Group (KRGG), Farid Qureishi said. In rice, he claimed that there has been no significant change in wholesale price, which peaked in the last week of February. As a result there has been no change in rice retail price.

Chairman Karachi Wholesale Grocers Association (KWGA) Anis Majeed claimed that the wholesale rice prices in all varieties have fallen by Rs2-3 per kg while in case of basmati and other premium qualities, the prices had come down by Rs5 per kg after a major increase of over Rs10 per kg.

He said that the rice crop, especially basmati paddy is reported to have been damaged by 30 per cent due to strong winds, rain and fog in Punjab. Besides, demand of Pakistani rice has surged in world markets due to low production of basmati in India.

In pulses, he said that wholesale rates of gram pulse will further dip in view of over 800,000 tons of production, which will hit the market next month. Besides, the markets have some 10,000 tons of Australian stocks. Gram pulse production in 2006 and 2005 stood at 350,000 tons and one million tons, respectively.

He said the mass imports of masur pulse had compelled the market players to release the stocks below the cost. However, the country is likely to see masur production of 20,000-25,000 tons this year which will arrive in April.

In moong, over 130,000 tons of local production has already arrived in the market. In mash, some 18,000-20,000 tons of Punjab crop had arrived in November 2006 while imports from Burma continue to meet the local demand.