KARACHI: The falling value of the rupee has yet to make any adverse impact on the edible items thanks to the declining trend on the world commodity markets.
Importers said that the falling prices of commodities on the world markets had nullified the impact of losing value of the rupee against the dollar since October 2011.
They, however, feared that if world commodity prices bounced back and the rupee maintained its slide the consumers would face a double impact of both devaluation and high prices of edible item on the world markets.
Karachi Wholesalers Grocers Association Chairman Anis Majeed told Dawn on Tuesday the edible prices stayed steady despite weakening of the rupee, but he feared coming months would be harsher for the consumers as the world commodity markets started showing rising trend for the last one week.
He said the rupee, which stood at Rs86 to a dollar in October 2011, was now trading above Rs90 in the interbank market.
The price of pulses would have gone up by Rs5 to Rs6 per kg at wholesale market since then but it did not happen due to weakening price of pulses on the global markets.
Anis said that pulses pricesstarted crawling up on the world markets which would push up local prices. He added that gram pulse price in Australia had risen to $520 per ton from $450 per ton in the past one week. The price was $550 per ton two months back.
Masur pulse rose to $590 per ton from $500 per ton. Two months back it was available at $650 per ton. Mash price slightly went up to $640 from $600 per ton. Two months back it was quoted at $800 per ton.
'The State Bank of Pakistan should intervene now to prevent further fall in rupee value otherwise its impact on edible and other imported items will be devastating,' Anis said.
He recalled that prices of pulses had tumbled in Dandi Bazaar in December 2011 due to falling price in international market. Despite persistent appreciation of the dollar against the rupee the wholesale price continued to drop.
However, retailers had not passed on the impact of declining rates in wholesale market to the end users.Sohail Janoo, a powder milk importer at Jodia Bazaar, said so far the powder milk prices had not appreciated in the aftermath of currency fluctuation.
He said not only milk powder but every commodityprice had plunged by at least 20 per cent at Jodia Bazaar.
He said 25-kg bag powder milk (local) was now quoted at Rs8,500 as compared to Rs9,000 while the price of 25kg bag of imported milk fell to Rs9,200 from Rs10,000.
He linked the price fall to over imports and off season during January to February followed by $200 per ton (C&F Karachi) decline in powder milk price to $3,100 from $3,300 per ton in the last two months.
Powder milk is mainly arriving from the USA and also from Germany and the UK.
Sohail said the prices in world markets would definitely not remain depressed for ever and any increase coupled with devaluation of rupee will fuel the domestic prices upwardly.
On the contrary, Pakistan Tea Association Chairman Mohammad Hanif Janoo said that Kenya tea prices surged due to weather conditions in the last one month while erosion in the rupee value had caused price hike of Rs30 per kg in the wholesale market.
Pakistan's main food import comprises pulses, tea, dried fruits, powder milk, edible oil, spices, sugar etc.,) whose import bill in JulyNovember 2011 was over $2 billion.
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