KARACHI, Dec 31: Traders are not very much hopeful of any respite in food items’ prices saying that falling rupee against the dollar may keep the commodity rates on the higher side in 2013 while much will also depend on local production and world prices.

They said that people definitely expect a lot from the government to announce measures aimed at bringing down prices ahead of general elections.

However, under current situation and past performance, traders believe that the government is unlikely to take any drastic steps to win masses support from any price cut in food items.

Consumers had already braved almost five years of the PPP coalition government which remained least bothered in taking any serious steps to control prices of essential food items.

“The government has nothing to offer now,” traders added.

Chairman Karachi Wholesale Grocers Association (KWGA), Anis Majeed said that if the government will come up with good policies then the prices of food items will remain under control and there is a need to check fall in the rupee value against the greenback.

He said the rupee has already lost its value by almost eight per cent in 2012 whose impact is being felt on finished imported goods and even on imported raw material prices.

Anis said that there is no sign that the government is capable of announcing any big relief for the consumers ahead of general elections and even chances are slim for any cut in import duties and taxes as the government cannot afford to take a big revenue hit.

He said the government should plan a relief which could benefit country’s maximum population instead of few people.

He recalled that due to good wheat and sugar production the country had to stay away from the imports of these two major commodities.

General Secretary Karachi Retail Grocers Group (KRGG), Farid Qureishi said that what consumers could expect when power and gas tariffs have further been raised ahead of 2013.

“Under current political and economic situation I do not expect any positive gesture from the government for the masses that could drive the prices of food items down,” he said.

Law and order situation coupled with power and gas crisis will continue to remain a tough challenge for the consumers and business community who have literally lost hope for a peaceful business conditions in 2013.

Furqan Punjani of BMA Management was of the view that food prices especially perishables are expected to witness some single digit inflation in 1HCY13 amid better farm produce.

He recalled that the price increase in perishable food items was relatively lower in 2012 primarily due to better produce after floods last year.

The inflation in perishable food items in the beginning of the outgoing year remained in the single digit however which went back to double digits in mid year due to higher travel cost to cities amid spike in fuel prices. Later on the price increases came back in single digits primarily due to expectation of better produce and lower variation in fuel prices.

Chairman All Karachi Tajir Itehad (AKTI) Atiq Mir said “traders and people hardly see any betterment in business environment during 2013 till the law and order persists.”

He termed the year 2012 as the worst for the business community in view of 60 per cent trading activities while 40 per cent traders faced financial crisis.

He said traders literally paid Rs10 billion as extortion, kidnapping for ransom etc., to the Bhatta Mafia. Around 60 traders lost their lives under various acts of violence including for ransom while 200 traders and businessmen were kidnapped.

Business community suffered a total 40 as non-working days causing a trade loss of Rs125 billion, Atiq said putting the onus on the provincial and federal government for not taking serious steps in curbing lawlessness.