KARACHI: Consumers are not likely to receive any big price relief in transportation cost and prices of commodities despite Rs5 per litre reduction in diesel rate, which is now selling at Rs122.26 per litre.

Commodity traders see only 50 paisa to Re1 per kg drop in wholesale rates of various items like pulses, wheat, rice, sugar, etc, while vegetable dealers are also unlikely to pass on benefit of recent reduction in petroleum prices to consumers.

Transporters ply big diesel vehicles on upcountry and intercity routes for bulk supplies of vegetables, fruits and other essential items.

In Karachi transporters are using CNG-fitted medium-sized vehicles for movement of goods between Superhighway Sabzi Mandi and Jodia Bazaar to various markets.

“I see only 50 paisa to Re1 per kilo cut in prices of sugar, wheat, rice, pulses, etc, on diesel price drop,” patron in chief of the Karachi Wholesalers Grocers Association (KWGA) Anis Majeed said.

If the commodities’ demand increase, the situation would be different, he added.

In vegetables, president of the Falahi Anjuman Wholesale Vegetable Market, Superhighway, Haji Shahjehan ruled out any price cut, saying that transporters usually raise transportation charges on increase in diesel price rather than cutting them on lowering of diesel price.

Chairman of the Pakistan Flour Mills Association (PFMA) (Sindh Zone) Khalid Masood also sees no impact of diesel price cut on flour prices.

“The Rs5 per litre drop in diesel rate holds no importance,” he said.

The millers had already been frequently reducing flour rates from time to time from the last week of January because of low demand at start of winter season and improved supplies of wheat from the Sindh government, he added.

The PFMA chief said the millers in Karachi a few days ago had cut ex-mill flour No.2.5 price by Rs4 to Rs42-43 from Rs46-47 per kg while super fine and maida flour prices had been shed to Rs45-46 from Rs49-50 per kg.

In last week of January 2020, the millers had reduced price of various varieties of flour by Rs6 per kg followed by Rs3 per kg in mid February.

Despite cut of Rs13 per kg from January till to date, retailers continue to fleece consumers by keeping price high on loose purchase of flour.

The retail price of five kg and 10 kg bag of Bake Parlor and Ashrafi flour is Rs270-280 and Rs540-580 depending on retail markets which were Rs340 and Rs670-680, respectively, in the last week of January.

Mr Khalid said 72 mills in Karachi received 110,000 tonnes of wheat from the Sindh government in February.

In the open market, the 100kg wheat bag is now available at Rs3,800 as compared to Rs5,300 few months back.

“Despite Rs13 per kg cut in flour prices, consumers are still forced to pay high prices for chapatti, nan, sheermal and taftan on the basis of flour price prevailing at Rs50 per kg a few months back,” he said.

Vegetables

Despite ban on export of onion, consumers are yet to witness any price fall as retailers are keeping its price between Rs70-80 per kg.

Wholesalers said onion price had dropped to Rs40 from Rs50 per kg. However, retailers deny it, saying that wholesale prices have not fallen as claimed by the Sabzi Mandi traders.

Onion price in wholesale markets still hovers between Rs50-60 per kg.

Onion is arriving from Sindh while some fresh supply of the crop has started to arrive from Balochistan.

By next month, onion from some of Punjab’s producing areas would start to arrive. Sindh onion is also finding its way to upcountry areas especially Punjab.

Potato’s wholesale price went up by Rs5 to Rs10 per kg to Rs30-40 per kilo as market players have started putting Punjab’s potato crop in cold storages in higher volumes.

Potato is also being exported to Sri Lanka, Malaysia, UAE, etc.

Published in Dawn, March 5th, 2020