GENERALLY, as political parties entertain voters with traditional food items at public meetings ahead of polls and in the vicinity of polling stations near Election Day; both food businesses and commodity markets witness a boost.

Since the 2018 election campaigning period has coincided with the month of Eid, in which lots of weddings are held, food businesses were expecting an exceptional rise in demand this year. But that did not happen.

Higher prices of food commodities and a stricter enforcement of electioneering code of conduct have apparently moderated expected demand, owners and managers of food businesses say.

Higher prices of food commodities and a stricter enforcement of electioneering code of conduct have apparently moderated expected demand

Traders at Jodia Bazar (one of Karachi’s oldest markets) say prices of almost all food commodities have risen either due to the direct impact of a recent rupee depreciation, or as a result of the inflationary pressure building up in the domestic economy. This has led to a slower than expected growth in bulk sale of rice, sugar, pulses and spices during this time of the year.

Besides, doubts created regarding the elections even taking place — owing to the tussle between political parties and the violence perpetuated ahead of the event — impacted forward sales of food commodities in the second half of June, traders at Jodia Bazar point out.

“I was expecting huge forward sales of rice, pulses and spices after Ramazan for delivery during the upcoming Eid and ahead of polls but well, I can say that the actual demand turned out to be just half of what I had expected,” says a leading trader at Jodia Bazar.

“Semi-wholesalers in the city to whom I supply food commodities may have had a better idea of the demand pattern during the upcoming elections, which is why many of them booked smaller amounts of food commodities in June.”

As confidence about the certainty of the July 25 polls increased towards the end of June, semi-wholesalers began purchases of food commodities from Jodia Bazar to buildup their inventories ahead of elections and amidst the ongoing wedding season.

This continues but after another rupee depreciation of 5.7pc on July 16 prices of commodities have suddenly increased, retailers and semi-wholesalers complain.

Despite the rate hike, food caterers that make direct and often advance purchases from Jodia Bazar say they continue to book orders for biryani, qorma, roti and zarda to be served at candidates’ corner meetings or the local offices of their political parties.

At these offices, food is served regularly to party workers and supporters that have started frequenting the offices ahead of elections. “But these elections are somewhat slower than 2013,” remarked Muhammad Owais, owner of a local food business at Nagan Chowrangi, Karachi.

Political parties with proactive social arms are also attracting voters via social welfare platforms and are organising events like picnic parties, social get-togethers and collective prayers for this purpose. On such occasions food and drinks are also offered.

Owners and managers of food catering houses in Saddar, Burns Road, Nazimabad, Liaquatabad, Federal B. Area, North Karachi, Malir, Gulshan-i-Iqbal, Gulistan-Jauhar and other parts of Karachi say many of them are supplying one to three daighs of biryani to the local offices of political parties daily.

The number of daighs of biryani served at the corner meetings of electoral candidates goes up depending upon the size of these meetings and the budgets of those who arrange them. In case of smaller meetings this number ranges between two and five, caterers say, adding that at larger corner meetings they have served five to 10 daighs as well.

The trend of serving food to political workers, supporters and prospective voters during campaigning is common everywhere in Pakistan but this time its reportedly gathering more momentum in Sindh and Punjab.

In KP and Balochistan, extreme pre-poll violence has somewhat dampened the spirit of campaigning.

Meanwhile, dealers complain of disruption in inland transportation of commodities because of roadblocks, clogged vehicular traffic and shortage of trucks and vans which are being hired to transport people to public meetings.

Traders with low inventories in Karachi are finding it difficult to augment the same with supplies from interior Sindh and Punjab. This, along with the increase in transportation charges on the back of higher fuel oil prices, is also a reason for the spike in prices of food items.

Rice supplies generally begin to thin out at this time of the year ahead of harvesting of the new crop from August-September; “but (due to the facts stated above), these supplies have almost come to a halt and our inventories have depleted faster than they normally would,” laments Muhammad Zulfiqar, a rice dealer based in Karachi.

Another noteworthy development is that the supply of food grains and vegetables to city markets has been affected owing to the increase in food offerings by political parties to their rural supporters.

The trend of serving the comparatively cheaper chana (chickpea) biryani and aalo (potato) biryani to workers of political parties at their local offices, particularly in financially modest localities is evident during these elections compared to the 2013 elections.

With an already flawed price monitoring mechanism, the deputation of price magistrates on election duties has given retailers, including those dealing in chicken and meat, a freer hand to overcharge customers, media reports suggest.

Published in Dawn, The Business and Finance Weekly, July 23rd, 2018

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