KARACHI, Oct 9: The Utility Stores Corporation has increased the price of sugar to Rs34 per kg after its rate went up to Rs38 in retail markets.

The price of the commodity was reduced to Rs30.50 per kg for Ramazan from Rs32 per kg. At that time, it was selling at Rs33 in local markets.

The USC, instead of reversing the price to Rs32 per kg, has made an increase of Rs2 per kg.

In July, the USC had suddenly pushed up its rate to Rs32 from Rs25 per kg. Currently there is no subsidy on sugar.

At many utility stores, sugar is not available, especially in evenings, and officials at stores offer lame excuses to visitors.

Because of Rs4 per kg gap between open market rates and the USC price, there were reports that stores officials engaged themselves in selling items in open markets

The government is providing subsidy on only two items – ghee/cooking oil and flour. The USC on July 12 made an increase of Rs50 on a 10kg flour bag to Rs200 from 150. The price was brought down to Rs150 for Ramazan and now the bag price has again gone up to its pre-Ramazan rate of Rs200.

Similarly, there is a Rs20 per kg subsidy on one kg ghee/cooking oil pouch. The one-kg pouch of ghee and cooking oil was available at Rs67 in April. Its price was raised in phases and in July it went up to Rs120.

In Ramazan, its price was brought down to Rs110. Now the government has further reduced its price, bringing it down to Rs105 per kg.

The government had announced Rs1.75 billion subsidy or five to 10 per cent relief on 1,300 food and non-food products during the holy month. Now prices have returned to the pre-Ramazan level.

Meanwhile, sources in the USC said that the 10kg wheat flour bag had been in short supply at many stores across the country because of insufficient supply of wheat to the USC.

They said that the supply of wheat bag had not been uniform at all the 180 stores in Karachi and there might be 40 to 50 stores getting the required supply.

An official at a USC store said that he was getting 250-300 bags a day as compared to 500 to 600 a day in Ramazan.

Bread and Roti rates: The Chakki atta is now being sold between Rs34 and 36 per kg in various areas as compared to Rs32 per kg in Ramazan.

Fine atta price was tagged at Rs35-36 per kg as compared to Rs32 per kg.

Shops in residential areas are charging more than the market rates.

On Wednesday, 100 kg wheat bag price further went up to Rs2,900 from Rs2,825.

During Ramazan, it was priced at Rs2,500. And an 80kg bag of wheat flour rose to Rs2,600 from Rs2,550 on Monday. It was available at Rs2,450 last week.

As a result of rising flour prices, 22 bread units have increased rates by Re1 to five on various products. The new bread prices would be effective from Oct 10.

This is the fourth increase in the prices since December 2007. A small bread will now cost Rs29 as compared to Rs26 while plain bread would be available at Rs28 as compared to Rs25.

A leading maker of sheermal and naans said that roti would become costlier to Rs7 while Sheermal and Kulcha each would be available at Rs20 and Rs17 respectively.

He said that naan-makers had made an increase of Re1 from Rs5 to Rs6 in July while sheermal and kulcha rates were increased to from Rs15 to 17 and from Rs13 to 15 in July.

The milk naan rates will surge to Rs11 from Rs9.

He said meetings were being held to announce new rates owing to rising prices of wheat flour, fine atta, maida and sugar.

He said that the price of fine atta has increased to Rs2,800 per 80kg bag from Rs2,100 a few months back, while maida rate has climbed to Rs2,925 per 80kg from Rs 2,400 a month back.

Sugar now is priced at Rs1,700 (per 50kg bag) from Rs1,500 a month back. He added that the increase in power and gas rates have further added burden on the already rising cost of production.