COMMODITY prices are on the decline the world over. These include edibles like wheat, rice, palm oil and sugar and non-edibles like oil and coal. However, Pakistanis have not reaped the fruits of this worldwide phenomenon.

Only in the case of petroleum products have we received some relief because this sector is controlled by the government.

Now, after some persuasion, ghee manufactures have passed on some relief to consumers regarding edible oil prices. Otherwise prices of all consumer items in Pakistan continue to rise.

There is no check on the food-processing industry’s profit. For example, a one-litre pack of a famous brand is sold for Rs110 and 400-gram of yogurt is sold for Rs85 (or Rs212 a kg).

A couple of weeks back, while shopping at a grocery store, I noticed that a famous brand of milk was being sold for Rs77 a litre. The reduction in price was probably due to only 10 to 12 days left for its expiry date. I am sure the price had a margin of profit for the grocery store, as well as for its manufacturer.

It is a well-known fact that many companies buy milk from villagers at Rs35 to Rs40 a litre. I leave it to readers to work out the profit margin for these companies.

Is there any government department to check profiteering by food-processing companies? Shouldn’t the Competition Commission of Pakistan look into the possibility of these companies being in league with each other to fleece consumers?

Mohammad Samiullah

Lahore

Published in Dawn, May 23rd, 2015

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