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POL hike triggers fresh price spiral
By Aamir Shafaat Khan
Thursday, 02 Jul, 2009
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The fresh wave of price spiral following hike in petroleum prices will further squeeze pockets of already-depressed consumers. -APP/File Photo

KARACHI: The increase in transportation charges following Rs6.94 per litre hike in diesel prices made an impact on some commodities like sugar, wheat and flour on Wednesday, according to retailers.

However, wholesalers denied that there was any increase in these and other commodities on Wednesday, but said in coming days prices would definitely rise as bulk of commodities were transported from upcountry and interior Sindh on diesel-run trucks.

Meanwhile, a vegetable wholesaler in Subzi Mandi anticipated at least Re1 to Rs2 per kg increase in vegetables and fruits prices as these items mainly arrive from upcountry and interior Sindh.

A vegetable retailer at Tariq Road said that the prices of greens had not gone up on Wednesday, but they would surely rise.

Karachi Retail Grocers Group (KRGG) General Secretary Mohammad Farid Qureishi said that sugar price at wholesale market on Wednesday surged to Rs43 from Rs42.50 per kg while its impact at retail side had not been recorded yet as the sweetener was selling at old rate of Rs45 per kg.
 
He said the price of 100-kg bag of wheat increased to Rs2,400 from Rs2,350. The 80-kg bag of atta produced by mill had risen to Rs2,250 from Rs2,220, but the retail prices of various varieties of flour like 10-kg bag atta, atta no.2.5, fine atta and chakki atta were pegged to old rates at Rs300, Rs30, Rs32 and Rs32 per kg, respectively.
 
'The modest price flare-up at wholesale level was because of rising transportation cost,' Farid said, adding that other commodities would also become costlier.

However, Karachi Wholesalers Grocers Association (KWGA) Chairman Anis Majeed anticipated a rise of 50 paisa to Re1 per kg in pulses, sugar, flour varieties, rice etc., following increase in petroleum prices.

The packers of Milkpak had given a shock to consumers by increasing the one-litre tetra milk price by Rs3 to Rs58, while the half litre and 250-ml packs would cost Rs32 and Rs16 as compared to Rs30 and Rs15 respectively. The new prices would be effective from July 4.

A distributor of another leading brand had informed the retailers about price hike in its brand from July 10.

Consumers had already paid very high prices for various commodities in the outgoing fiscal year like flour varieties, rice, sugar, tetra, powdered, loose milk, chicken, red meat, pulses, ghee and cooking oil, tea, soap and washing powder.

With the start of new fiscal year, the fresh wave of price spiral following hike in petroleum prices may further squeeze pockets of already-depressed consumers.

A price survey conducted by Dawn showed that the price of mash washed increased to Rs95 on July 1, 2009 from Rs92 on June 1, while mash black whole price was now tagged at Rs66 from Rs57 per kg.

Mung washed and whole prices rose to Rs60 and Rs50 per kg from Rs53 and Rs48 per kg. There was no change in Arhar and Masoor pulse at Rs80 and Rs112 per kg. The price of gram pulse fell to Rs47 from Rs50 per kg.

The retail price of Basmati Super Kernal, Basmati Kernal, Basmati Shaheen and Basmati Sela had risen to Rs125, Rs110, Rs100 and Rs110 per kg from Rs115, Rs100, Rs95 and Rs105 per kg due to massive exports.

Tea packers had also enhanced the rate by Rs25 per kg in June followed by increase in ghee and cooking oil prices during the last one month. For example a one kg pack of Tapal Family Mixture now sells at Rs370 as compared to Rs345.


Tags: commodities,sugar,wheat,flour,fuel hike
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