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KARACHI, Jan 1: As the city returned to normality on Tuesday with the opening of all the major markets, consumers still felt the heat from the burning prices of commodities, especially flour, ghee, cooking oil, vegetables and sugar, which had risen sharply between Thursday evening and Sunday at shops located in the residential areas.
On Tuesday, the most sought after item on the purchasers’ lists was various varieties of flour, which many consumers were seen buying in bulk quantities irrespective of the rates being charged by the retailers. The buyers were more curious about its availability in the coming days.
However, the retail markets had witnessed thin attendance of buyers owing to the liquidity crunch as people could not draw their salaries on account of the bank holiday on Tuesday (Jan 1). Only a few people had managed to get their salaries on Monday as the majority of banks and markets had closed by 1pm after the rumour of the killing of MQM Coordination Committee’s Deputy Convener Dr Farooq Sattar spread across the city. Even those who had withdrawn their salaries through ATMs were seen in lesser numbers in the markets.
Retailers were charging Rs25 per kg for fine wheat flour on Tuesday as compared with Rs22 on Thursday, while atta no 2.5 is now priced at Rs24 as compared with Rs22 per kg. Chakki atta had already become a rare commodity but retailers were pocketing Rs26 per kg as against Rs24 before market closures. A 10kg bag of wheat flour produced by mills was selling at Rs230-240 as compared with Rs220 earlier. However, the government had announced the rate of Rs160 per 10kg bag, but it was not available at this rate in the market.
The 16kg ghee and cooking oil tins were now selling at Rs1,660 as against Rs1,460 on Thursday. The sugar price had also surged to Rs28 per kg from Rs24-25 in the last few days.
Small and medium sized retailers, situated inside the residential areas, had virtually enjoyed a field day by charging higher prices on various commodities from Thursday evening to Sunday.
These retailers had sold a tetra-pack of Milkpak, Olpers and other brands of milk at Rs50-55 per pack as against Rs44, while they had sold a 10kg bag of Ashrafi brand wheat flour at Rs250-300 as compared with Rs220-230. Eggs were selling at Rs60-70 per dozen while loose milk sellers had charged Rs40-45 per litre as compared with Rs32 per litre.
Vegetable prices
Vegetable retailers have been reluctant to curtail the rates prevailing since Thursday. However, they said that there had been some relief on Tuesday in prices compared with the period from Thursday to Sunday.
For instance onions are now selling at Rs20 per kg, while they were available at Rs16 before the violence. During the market closures and violence, consumers had paid Rs25-30 per kg. The tomato price is currently tagged at Rs40 per kg while it was available at Rs50-60 per kg from Thursday to Sunday. Before the violence it was available at Rs30-35.
Potatoes are currently available at Rs20 per kg while they were selling at Rs16 before Thursday. Retailers had demanded Rs25-35 per kg for potatoes from Thursday evening to Sunday.
On the wholesale end, only onion prices in the wholesale vegetable market, known as the Sabzi Mandi, had come down to Rs10 per kg from Rs15-16 per kg on Monday. Before the market closure they were available at Rs6-8 per kg. To some extent onion supplies from Sindh’s producing areas had improved.
President of the Wholesale Vegetable Market’s welfare association Haji Shahjehan said that tomato prices, which were hovering between Rs10-12 per kg ahead of the violence, had still not changed and ranged between Rs20-25 per kg as supplies from Sindh had not increased by much.
Similarly, the potato price has surged to Rs10-12 from Rs6-8 per kg, but its rates have not yet fallen, he said.
On Tuesday, the Mandi recorded 50 per cent trading activities after the arrival of 200-250 trucks as compared with 25 per cent trading on Monday when only 80-100 trucks had arrived from Sindh and up-country.
He said that the prices of other perishable green vegetables had surged by 100 per cent in the Sabzi Mandi owing to the suspension in supplies. Besides, exporters of Kinoo (orange) and potatoes had lost many containers on the way to the port after angry protesters burnt them.
He said prices are expected to fall in the coming days if the supplies from the producing areas improve substantially.
Wheat flour crisis
On the flour crisis, the provincial chairman of the Pakistan Flour Mills’ Association, Chaudhry Ansar Jawed, blamed the retailers for overcharging from consumers despite the fact that mills had increased the rates very slowly.
He said the price of an 80kg bag of wheat flour, produced by the mills, had surged to Rs1,650 on Monday as compared with 1,600 after Eidul Azha and Rs1,525 two weeks ago. “We have not increased the rates the way wheat prices have been going up,” he said by quoting a 100kg bag of wheat at Rs2,000 on Tuesday, while it was available at Rs1,600-1,700 before Eid.
Mr Ansar said the Punjab government’s decision of imposing a ban on wheat movement to other provinces had pushed up the wheat and wheat flour prices. “The ban on movement should be lifted immediately, otherwise flour and wheat prices would further come under pressure,” he said. Karachi’s 72 mills were relying on the arrival of 90,000-100,000 tons per month of wheat from Punjab.
He said the food department was now promising to enhance wheat supply to the millers from the current 2,730 bags per week to each mill. A month back a mill was getting 2,280 bags.
He added that the retail rate of wheat flour produced by mills should not exceed Rs22, but the market players had been playing havoc with the prices.
However the Chairman of the Karachi Wholesale Grocers’ Association, Anis Majeed, said that there is a shortage of wheat in the market while millers had been holding back wheat flour supply in the markets.
On the other hand the main commodity markets had witnessed a busy day with the arrival of goods from the port and loading of shipments for up-country destinations, he said.
