KARACHI: Grocery items’ prices are still rising despite a substantial decrease in freight charges by the transporters following two cuts (cumulative Rs13.33) in diesel prices by the government since Nov 1.

Instead of providing any relief, manufactures of consumer items continue to raise prices, people complained.

The Sindh government in the second week of the current month had decreased the official price of wheat to Rs3,400 per 100kgs from Rs3,200 for one month, but so far retailers have not reduced the price of flour.

Ashrafi and Bake Parlour (10kg bag) fine flour still sells at Rs430. Retailers are demanding Rs45 per kg for fine flour, followed by a Rs48 per kg for mills flour and Rs38 per kg for flour no 2.5.

A leading tea packer raised prices of its brands on Dec 1. Lipton 190 gram packet is now priced at Rs125 as compared to Rs122 while soft pack of 475 and 950 grams now sells at Rs300 and Rs595 as compared to Rs290 and Rs575.

Distributors of tetra and powdered milk hinted at increase in the price of one litre pack to Rs120 from Rs 110, followed by Nido milk price hike from Rs670 to Rs700. A leading manufacturer of tomato ketchup pushed up rate to Rs210 from Rs190 for its 800 grams pack.

Interestingly, the price of powdered and tetra milk is not printed on its packets. Same is the case with some tomato ketchup brands.

Noticeable price fall was witnessed in rice varieties and sugar, thanks to arrival of new crop, which traders believe, has nothing to do with low transportation cost.

However, ghee and cooking oil manufactures reduced prices by Rs10 per kg/litre pouch due to falling rates of palm oil on the world markets.

Barring ghee and cooking oil, retailers said “prices of most of the items produced by multinational companies and the private sector units are still intact.

Due to crushing of sugarcane by the millers, the wholesale price of sweetener has fallen to Rs50 from Rs54-55 per kg. In retail markets, it is priced at Rs55 per kg, but in some areas retailers continue to charge above Rs55.

The wholesale rates of various varieties of new rice have fallen by an average 20 per kg on new rice crop, but prices of old rice in the markets have not come down.

Wholesalers had claimed last month that there would be cut in the transportation charges from upcountry goods carriers by Rs3,000-5,000 but it seems that they are in no mood to pass on relief.

In Karachi, heavy transportation is conducted on diesel vehicles, but due to short distance of 15-20km either from port to godowns or from godowns to the wholesale market, the cut of around Rs14 per litre in diesel works out to a nominal drop of few paisas per kg.

CNG-fitted Suzuki pickups are used from Dandia Bazaar to various retail shops in the city which means that there would be no decline in transportation costs form their operators.

Consumers are suffering because of ineffective price checking in the city. Around 50 officials are assigned to check profiteering in 18 towns having population of 20 million.

Published in Dawn December 21th , 2014