February 15, 2008	Friday	Safar 07, 1429

KARACHI, Feb 14: Consumers have started precautionary buying of essential items ahead of the February 18 general elections. Retailers claim that many people are buying 20-25 per cent more than what they usually purchase in order to keep stocks in hand for at least one week.

Consumers had experienced a terrible shortage of essential items followed by exorbitant prices charged by the retailers in the period following Benazir Bhutto’s killing, from Dec 27 to 30, in which trading activities in the main wholesale and retail markets remained paralyzed.

Some retailers say that because of the rising trend in prices of edible items, many consumers are not making extra purchases considering the availability of cash stocks for the next 15 days. However, there are many cash-rich people who do not bother about paying high prices and these are the ones making precautionary purchases.

They said that some consumers, who have high salaries and businesses, might have purchased extra in the first week of this month.

Chairman of the Karachi Wholesalers and Grocers’ Association (KWGA) Anis Majeed claimed that there had been a 100 per cent increase in retailers lifting stocks since Monday as compared to their normal buying. “A retailer who used to buy 100 bags of 50kg of pulses and rice has been purchasing 200 bags since Monday,” he said.

“People have become frightened after the three to four day market closure following Benazir’s killing, coupled with the price hike and food shortages,” he said, adding that this time they are trying to gear themselves up for any untoward incident ahead of and during the elections, which may be followed by the possible closure of markets. In case of flour, there has been normal buying since its rates have stabilized, he further claimed.

He said wholesalers usually maintain stocks of eight days in the markets while in various godowns in different areas they have stocks of 15 days.

General-Secretary of the Karachi Retail Grocers’ Group (KRGG) Farid Qureishi said people are even making 20-25 per cent extra purchases of tetra-packs and powdered milk besides pulses, rice and sugar. However, he claimed there has been an increasing trend in buying of flour varieties, perhaps because of its falling prices. “Consumers are now buying two bags of 10kg instead of one bag,” he added.

He said many retailers had started piling up stocks a few days back from the wholesalers, despite the fact that retailers usually maintain one week’s stocks of commodities in their shops.

He said many customers are busy making purchases from shops located in their vicinity. “I think people will arrive in more numbers on Friday and Saturday,” Mr Qureishi added.

Shaheen Iqbal of Abdullah Store in Empress Market said he has observed an extra rush of buyers since Monday. “This can be termed as precautionary buying and not panic buying,” he said, adding that many people are also purchasing potatoes, onions and other vegetables in higher quantities.

‘Sales are normal’

In sharp contrast, two Empress Market shopkeepers offered divergent views. President of the Anjuman Dukandar Empress Market Liaquat Ali said “there is no panic buying in the market and the situation of sales is normal because consumers are already squeezed due to the meteoric rise in prices, especially of rice, ghee, cooking oil, pulses etc.”

Aashiq Abbasi, owner of Sabir Store, also ruled out any extra rush of buyers in the markets ahead of the elections. “Normal buying and selling of commodities has been going on for the last few days and consumers are not making extra purchases, he said.

A retailer, who asked not to be named, said that many shopkeepers have a bad habit of complaining even in times of booming sales. He said there is indeed some extra buying from consumers, but certain retailers are bent upon presenting a normal situation.