KARACHI, March 14: The subsidised ghee and cooking oil offered by the government at the utility stores from March 10 has received a cold response from the general public because consumers have doubts over its quality. They are many brands conscious consumers who are not ready to shift to the cheaper brand.

On the pulses side, the official rates of four pulses (gram, masur, moong and mash) available at utility stores are getting closer to the retail market rates, thus losing charm for consumers. This is because the pulses rates have been on the decline because of new crop or over imports.

The management of the Utility Stores Corporation (USC) appears not worried of losing consumers who may shift to the regular retail and wholesale markets due to the persistent fall in pulses prices.

In ghee and cooking oil, a senior USC official told Dawn that there had been no extra ordinary pressure of the consumers for buying subsidised edible oil at Rs67 per kg/litre since from its launching date on countrywide basis. He said even in the upcountry the consumers had not been seen going wild for buying ghee and cooking oil at reduced rates at the utility stores.

The USC has planned to sell 20,000 tons of cheap ghee and cooking oil on monthly basis. “In view of the current consumers’ response, I think that the ghee and cooking oil sale may not exceed 20,000 tons,” he said adding that much depends on the consumers’ future response.

However, all the branded packers and medium-size units have increased the rates of ghee and cooking oil in March but it has not resulted in diverting the consumers towards buying the officially reduced ghee and cooking oil at the utility stores.

The USC has introduced one kg banaspati ghee pack and Man Pasand brand (ghee and cooking oil) packs by Dalda Foods at the stores but in some areas officials at the stores have been seen excusing with the consumers for non-availability of Man Pasand brand.

As a result, the consumers have only one choice to purchase Utility Stores ‘Banapati pack’ of one kg. However, the official claimed that both the products are available in abundance at all the stores.

He was of the view that the real response for subsidised ghee and cooking oil could not be seen as the salaried people might have purchased their monthly ghee and cooking oil requirement in the first week of the current month as the government launched the subsidised products from March 10.

In pulses, utility stores have been displaying banners highlighting Rs35 per kg for gram followed by Rs32 per kg for masur, Rs57 per kg each for moong and mash pulses. According to the official, the government provides subsidy on only two item - gram and masur.

In the wholesale markets, gram pulse is priced at Rs30 per kg as compared to Rs35 last week. Retailers are charging Rs35-37 per kg depending on the areas. Gram pulse rates are expected to decline further because of over 800,000 tons production, which will hit the market next month.

Masur sells at Rs36 per kg at wholesale after falling from Rs40 while retailers are still charging Rs38-40 per kg. Masur prices have been on the decline because of over imports thus compelling traders to release the stocks below the cost.

The wholesale rate of moong is now being quoted at Rs46-51 per kg depending on the quality. Moong crop of 130,000 tons has already arrived. Retailers are still quoting Rs55-60 per kg. Mash rate at wholesale hover between Rs48-52 per kg but retailers are charging Rs54-55 per kg from the consumers.

Mash crop of 18,000-20,000 tons has already arrived in November 2006 while imports from Burma continue to meet the demand.

Retailers can be blamed in fleecing the consumers as they have not passed on the benefit to the consumers of declining wholesale rates. If retailers charge a reasonable profit from the end-users on pulses then there will be hardly any marked difference in the prices of pulses available at utility stores and in retail markets.

The government should re-fix the pulses rates at the utility stores in view of the falling wholesale rates so that utility stores could hold charm for the consumers.

The USC official claimed that 30-40 per cent out of the total population purchase their essential items form the utility stores.