KARACHI: The price of potato has increased to Rs50 per kilogram followed by up to Rs80 per kg rate of onion as retailers blame rising wholesale prices for the hike.

An increase in prices also means no impact of the Rs5 per litre diesel price cut on commodity rates.

A month back, the retail price of potato was Rs40 per kg while onion was selling at Rs60 per kg.

Wholesalers said onion’s wholesale rate jumped by Rs10 per kg, making it Rs60-65 per kg, while the potato rate showed a rise of Rs5 to Rs10 per kg, taking it to Rs40.

The government has already banned onion exports till May 31 to stabilise prices, but the situation is turning against the consumers at a time when Prime Minister Imran Khan and his cabinet members have been signalling a drop in prices following strict actions taken against hoarders and commodity investors.

The city government’s rate of good quality potato and onion has been raised to Rs68 and Rs41 from Rs58 and Rs35 per kg, last week, respectively.

Consumers believe that it is the right time for the government to check stocks of onion and potato in the city’s wholesale markets as well as in the producing areas.

All Pakistan Fruits, Vegetable Exporters, Importers and Merchants Association head Waheed Ahmed, while claiming low production in Sindh, said onion was going in higher volumes in Punjab. The Balochistan crop has also started arriving in little quantities and by next month, onion from some of Punjab’s producing areas would start to arrive here.

He said the production of potato in Punjab was 15-20 per cent less than last year’s following 20-30pc drop in potato’s cultivation.

Potato is also being exported by sea and by road and the bulk buyers are the Central Asia States. However, exporters are facing a massive drop in orders from Russia, where cheap Egyptian potato is finding its way.

Waheed said there is a need for research and development, good agriculture practices and use of good seed to avert any crop crisis.

Sugar price

A number of retailers have started charging Rs85 per kg for sugar instead of Rs80, attributing it to last week’s increase in wholesale price to Rs78 from Rs74 per kg.

The increase in the sweetener’s price is surprising in view of sugar cane crushing by the millers from December 2019 coupled with a drop in transport cost on account of the diesel price cut from March 1, 2020.

As per figures of large scale manufacturing, sugar production rose by 97pc to 1.093 million tonnes in December 2019 from 554,544 tonnes in December 2018.

Despite reports of strict scrutiny of sugar price hike and its hoarding, consumers continue to witness rising prices.

In January 2018, it was available at Rs60-65 which then soared to Rs75 per kg in January 2020.

Published in Dawn, March 11th, 2020