KARACHI: Consumers have yet to witness any drop in the prices of grocery items despite a reduction of Rs6 per litre in diesel prices from November 1, 2014.

Meanwhile, the government is expected to further slash diesel price from December 1 in view of sliding crude oil and finished oil product prices.

So far, neither the federal nor provincial/city government have asked the manufacturers and market traders if they shared any relief with the consumers on account of fall in transportation cost.

Retailers in various areas said prices of all commodities produced by MNCs or private sector companies have been pegged to their old levels. They said there has been no intimation from companies’ distributors or other suppliers regarding any price cut.

Wholesale price of sugar and some rice varieties had declined but it was generally attributed to start of sugarcane crushing by the millers and good production of rice.

Chairman Karachi Wholesalers Grocers Group (KWGG), Anis Majeed said wholesale sugar price fell to Rs51.50 from Rs54 per kg two weeks ago while price of some rice varieties also dropped by Rs3 to 4 per kg.

He said transporters bringing various commodities from upcountry had reduced transportation charges by Rs3,000-5,000 thus translating into Rs1 to 1.50 per kg fall in various commodities at wholesale stage.

Minor gains: In Karachi, heavy transportation is conducted on diesel vehicles but due to short distance of 15-20 km either from port to godowns or from godowns to the wholesale market, the impact of over Rs6 per litre in diesel price cut works out to very nominal drop of few paisas per kg.

General Secretary Karachi Retail Grocers Group (KRGG), Farid Qurieshi said the government should take notice as many manufacturers of powdered milk, tomato ketchup, mayonnaise, biscuits etc have reduced the quantity keeping the rate unchanged.

On rupee-dollar fluctuation and increase in utility charges, the manufacturers have been pushing up the rate frequently.

He said ghee and cooking oil makers had discontinued price discount schemes.

Farid urged the government to take notice of manufacturers’ practice of reducing the weight of commodities.

CNG-fitted Suzuki pickups for carrying essential commodities are used from Dandia Bazar to various retail shops in the city which means that no question arises of decline in transportation cost form their operators.

Diesel operated trucks are used in transporting pulses, wheat, sugar, rice etc from the producing areas of upcountry to the Karachi markets. Similarly, bulk goods’ carriers, which run on diesel, are also used for movement of goods between port and the wholesale markets.

President Falahi Anjuman Wholesale Market Super Highway, Haji Shahjehan said upcountry transporters had decreased transportation charges by Rs 5,000-8000 depending on the distance. Improvement in supplies after the start of new crop especially in onion, potato and tomato and reduction in transportation charges from upcountry had brought down prices.

Published in Dawn, November 28th, 2014