The blessings of Ramazan are many for those dealing in commodities. While the buyers suffer, the sellers rake in a windfall. This has been going on since ages
LIKE all previous Ramazans, nothing has changed this year as well. Consumers are again at the mercy of retailers and shopkeepers who are forcing them to pay higher prices for the usual products as price regulators and other concerned officials, watch from the sidelines.
The City Government’s crusade against the profiteers has yet again failed to live up to the consumer’s expectations. And all this, because of ill-planning and mismanagement in the city government’s efforts to control the prices.
Issues like getting late-magisterial powers for the Deputy District Officer (Revenue), heating debate over price fixation with market forces, non-cooperative attitude of retailers, wholesalers and local producers in slashing their profit margins etc. continue. Perhaps Pakistan is the only country where retailers, wholesalers and producers deliberately avoid in giving any benefits to the general public in shape of price cuts. In fact, just before the advent of Ramazan, manufacturers increase the prices of their products and then, reduce it during the holy month to give an illusion of their concerns for consumer welfare. And then there is that age-old Ramazan shortage that is also suspected on greedy stockists whose activities create an artificial shortage.
In sharp contrast to Pakistani producers and traders, producers in other countries offer tremendous discount on the eve of Christmas and other auspicious occasions. The example of the Saudi government’s tackling during Haj, when there aren’t any food shortage, that too on discounted rates, is simply amazing. It’s all in abundance as well.
Other than the authorities and the suppliers, Pakistani consumers too are at fault in the artifical creation of this shortage. People just become sentimental and passionate during Ramazan and make all efforts to buy products in bulk rather than observe any patience. Seeing the buying euphoria among consumers, retailers fully utilize the situation by charging their own prices. As a result, low and middle income group people suffer the most. Another thing that lacks among consumers is that they do not offer any resistance over inflationary trends in prices. They are happy to pay higher prices rather than register their complaints at the complaint centres. Perhaps they know that only a meagre fine will be imposed and sellers know how to recover the fine from consumers.
But the question is, the concept of leaving the markets at the mercy of free economy, as a number of retailers demand, is right? Not really, say market pundits who contend that free market economy concept, especially in Ramazan, is likely to fail as traders are quick to push up the price on short notice and adopt dilly-dallying tactics in curtailing the rates. They are thirsty of reaping 100 per cent profit instead of 20-25 per cent profit in the holy month.
If only City government officials were to do their homework properly, gather statistics of stock situations in the market, local crop situation, arrival of imported commodities, check stocks in godowns and hidden places, consumption pattern etc., then the whole mess will be easy for them to take sort.
The question is, how long long will the consumers have to suffer at the hands of market forces? When will the ill-planning of the price regulators, especially in the month of fasting, end? And, why does the price controlling mechanism of the City government fails every year?
The painful memories of last year, when prices, especially that of mutton and beef spiralled out of control are still vivid. Other items such as flour, dairy products and fruits too went north despite tall claims by the government that the prices of these items had well under control.
A minor sum of Rs2.5 million was collected last year on account of fines and challans from the profiteers. Executive District Officer, Enterprise and Investment Promotion, City District Government Karachi, M. Raeesuddin Paracha defends the price control mechanism and points to serious drawbacks and loopholes being faced by the department in controlling the price flareup.
He recalls that when the Bureau of Supply and Price of Sindh Government was dissolved a few years back, it was assumed that its Price and Weight and Measure Wing were completely transferred to the City Government, with the requisite machinery, records, staff, equipments and buildings. But nothing happened.
“How can one expect a 100 per cent performance from us in curbing price hikes when you have some serious shortcomings?,” he queries and defends. The issue of magisterial powers to the DDOs always surfaces in Ramazan. For the past two years, powers to the DDOs had been conferred on the sixth or seventh of Ramazan. Besides, there is also a legal problem that DDOs must be a holder of LLB degree and experience of six months as a magistrate. And, the powers to the DDOs are only restricted for the Ramazan and not for the whole year.
“How can we control profiteering with 18 DDOs in 18 towns?,” Raeesuddin adds, saying that at least 100 DDOs are needed to cover the metropolis. However, he is of the view that 54 complaint centres are enough for the huge port city.
Raeesuddin says that even DDOs, who get magisterial powers, are not dedicated in officiating their duties during the holy month because this is an additional charge. They accept the magisterial powers to check prices as a fatigue and not as a professional mandate. Besides, non co-operative attitude of the police in price checking exercise with DDOs also mars our efforts.
“We need full time DDOs who have the full support of police officials in order to get good results,” he says.
General Secretary Karachi Retail Grocers Group (KRGG), Farid Qureishi, on behalf of the retailers, is not ready to take the whole burden of charging higher prices in Ramazan.
He thinks that there should be regular meetings between wholesalers, retailers and government officials after every two months, so that it could be easy for both the stake-holders to determine prices keeping in view statistics and market situations.
Advisor and immediate ex- president of Karachi Wholesaler Grocers Association (KWGA), Anis Majeed says that as a short term measure, traders and government officials should sit together and decide to lower the profit margins on products in Ramazan. Once the price is decided, it should be released in print and electronic media, urging people not to pay more than the fixed prices. There is a problem of public awareness about price fixed in Ramazan.
He says that another problem is that traders join hands with inspectors who do a face saving by visiting the market but in real sense they allow a free hand to traders to make windfalls.
Besides, the government’s efforts to control price through strict measures have always resulted in failure in Ramazan. Anis says that when the product is in surplus then the price will remain stable recalling the price stability of gram pulse for the last two year due to frequent supplies on account of higher production.
In perishable items, fruit prices have always created a rumpus and the government and retailers have always been seen blaming each other. Retailers usually charge 30-50 per cent higher prices in every Ramazan and sometimes 100 per cent just hours before the start of the holy month, thus blaming government machinery over faulty fixing of prices. City government, on its part contends that fruit sellers deliberately charge higher prices as they know that fruit is a hot item and consumers will not hesitate in paying higher prices.
Fruit and vegetable wholesalers do not agree with the government’s decision of binding them for selling the commodity at controlled rates. They say that market forces should be given free hand as fruits and vegetables are perishable items and their prices fluctuate on demand and supply basis. They claim that perishable items cannot be piled up at godowns to make windfalls in Ramazan.
Some consumer bodies, formed to safeguard the interest of common men, are actually least bothered about consumers’ plight. They sometimes only give lame statements about inflationary trends, but in practical terms, their existence has failed to make any impact on the life of citizens. Lets see how Consumer Right Council, which has been set up in Sindh, protects the consumers’ right.
The blessings of Ramazan are many for those dealing in commodities. While the buyers suffer, the sellers rake in a windfall. This has been going on since ages
