Any hike in sales tax, other duties and taxes, increase in power, gas and petroleum rates would further impact prices of kitchen items and would burden the family budget. — File Photo

KARACHI: The forthcoming budget instead of providing any meaningful relief to the people might be laden with new taxes, market reports suggest.

The government since its inception has not been able to control inflation or improve price monitoring mechanism leaving the market at the mercy of manufacturers to raise prices unilaterally. Retailers and wholesalers have also been enjoying a free hand in pushing up the rates.

While succumbing to the pressure of powerful lobby of red meat merchants and dairy farmers, the City government is responsible for allowing hike in their rates. Even its efforts to control prices of tetra milk also failed.

The most shocking hike in prices came in ghee and cooking oil, fresh, powder and tetra milk, meat, etc as their powerful producers (many multinational companies) are operating under a cartel.

The government has never intervened to check ghee and cooking oil producers for persistently raising the price under the pretext of global palm oil rates.

The high cost of living can be gauged from a market survey of prices (prevailing ahead of last year and current budget) showing a steep rise in five kg ghee of Dalda to Rs975 as compared to Rs725 in June last year.

The 16-kg ghee in June 2010 was available at Rs1,800 as compared to current rate of Rs2,580.

Nido one kg pack now costs Rs540 as compared to Rs460 ahead of last year's budget. One liter tetra milk pack is now available at Rs76 as compared to Rs62.

Fresh milk price has risen to Rs68 as compared to Rs56 per liter.

Medium size pack of tea (Lipton Yellow Label) costs Rs125 as compared to Rs114.

The prices of beef with and without bones in many markets are now tagged at Rs270-280 per kg and Rs330-340 per kg as compared to Rs240 and Rs300.

Mutton price hovers between Rs480-520 per kg compared to Rs420-460.

The price of fine flour, atta No 2.5 and chakki rate is Rs32, Rs28 and Rs35 per kg as compared to Rs33, Rs28 and Rs33, respectively.

Kernal basmati super is now priced at Rs125 per kg as compared to Rs110, Irri 6 price is Rs40 as compared to Rs34 per kg.

According to research analyst of Top Line Securities Mohammad Minwalla the power tariff has risen by eight per cent to Rs10.7 per unit from Rs9.8, while the gas price in maximum category has risen by 17 per cent to Rs1,006.4 per mmbtu from Rs860.2.

He said one dollar was equal to Rs85.39 in June 2010 compared to current rate of Rs 85.85 showing one per devaluation of the rupee against the greenback.

Urea and DAP prices are now quoted at Rs1,234 and Rs4,050 per 50 kg bag as compared to Rs813 and Rs2,172. A good quality cement bag of 50 kg is now available at Rs400 as compared to Rs279.

The rates of petrol, diesel and CNG are now Rs86.71, Rs94.11 per liter and Rs56.80 per kg compared to Rs69, Rs75.7 and Rs55.33, respectively.

Despite fluctuating trend in sugar, its rate is almost same at Rs65-66 per kg as compared to last year.

Karachi Wholesalers Grocers Association (KWGA) chairman Anis Majeed said

food inflation can only be controlled by increasing productivity of various crops

Senior Research Analyst Top Line Securities Nauman Khan said rise in the international oil prices culminating into 5.94 per cent and 4.85 per cent increase in domestic petrol and diesel prices were the major factors contributing to the rise in the said head.