May 14, 2008	Wednesday	Jamadi-ul-Awwal 8, 1429

KARACHI, May 13: Pre-budget price shocks have started hitting the consumers, and rice has taken a lead in the price spiral, coupled with a rising trend in sugar, onion and pulses rates.

Buyers of flour, cooking oil and ghee are still in the shock of a second time increase in the prices made by the Utility Stores Corporation (USC) in the last 20 days.

A 10kg bag of atta (No 2.5) now sells at Rs150 as compared to Rs140 in the last week of April. The 1-kg pouch of ghee and cooking oil is now tagged at Rs100 as compared to Rs80 per kg earlier. It was Rs67 per kg in April.

Retail prices of various rice varieties have further surged after a fresh rise in wholesale prices.

Retailers have put a price tag of Rs125 per kg for Super Kernel basmati as compared to Rs105 last week.

Basmati Premium now sells at Rs115 as compared to Rs100 per kg. Basmati Wind is now priced at Rs100 as compared to Rs85-90 per kg. Irri-9 is available at Rs70 as compared to Rs65 per kg last week.

According to wholesale rates issued by the commodity market, Basmati Kernel is now available at Rs65-75 per kg as compared to Rs60-70 last week. Two weeks back, it was selling at Rs45-65 per kg.

Basmati-386 price now hovers between Rs44 and 50 per kg as compared to Rs40-48 per kg last week. It was selling between Rs38 and 44 per kg two weeks back.

Basmati-385 Saila price has surged to Rs45-50 as compared to Rs40-46 per kg while it was ranging between Rs35 and 42 per kg two weeks back.

Basmati Super price has increased to Rs60-70 as compared to Rs55-65 per kg and Rs40-45 per kg two weeks back.

Irri-6 price is now tagged at Rs35-40 as against Rs34 and Rs28 per kg two weeks back.

Irri-9 Sindh price has risen to Rs41-45 as compared to Rs38-40 last week and Rs35-36 per kg two weeks back.

The fixation of Minimum Export Price (MEP) on surging rice exports on April 30 is yet to provide any relief to consumers.

Wholesale prices of pulses have recorded a new peak. Masoor (imported) is now priced at Rs73-78 per kg as compared to last week’s price of Rs71-75 per kg.

At the retail level, it is now available at Rs100 per kg while on May 1 it was priced at Rs88 per kg.

Many retailers are seen charging over Rs100 per kg in many areas.

The wholesale price of Moong now ranges between Rs37 and 43 per kg as compared to last week’s rate of Rs33 and 38 per kg. Retailers are demanding Rs56 per kg as compared to Rs50 per kg last week.

Sugar price has been under pressure and currently it ranges between Rs26 and 28 per kg depending on the area while on May 1, it was available at Rs25 per kg.

A retailer said that people in the market are grabbing delivery orders from the mills. They hold the product and sell it in the market when rates increase.

Onion rate has surged to Rs14-15 per kg as compared to Rs12 per kg on May 1.

The new government is busy in the judiciary issue, and has left the consumers at the mercy of market forces.

Market reports suggest that just a few days ahead of budget, the market players and speculators resort to heavy hoarding of essential commodities in anticipation of imposition of new taxes and duties so that they could make windfall profit after the budget on the pretext of rise in taxes and duties.