KARACHI: As the State Bank of Pakistan (SBP) cut the interest rate to 20.5 per cent in April following a sharp deceleration in inflation, harsh taxation measures in the budget 2024-25, along with increasing global prices and a growing gap between supply and demand, have once again led to a rise in food prices, particularly for pulses.

Commodity importer Faisal Anis Majeed said the federal government has increased the federal excise duty (FED) on the import of pulses to 1.85pc from 1.25pc, followed by additional taxes on filers and non-filers. As a result, the pulses market is quite panicky about future prices.

Retailers have also started charging higher prices for various pulses, citing rising international prices and new taxation measures in the budget. Besides, the demand for various pulses, especially gram, has soared in Muharram.

For example, the retail price of gram pulses of different qualities now ranges between Rs320-360 per kg, compared to the pre-budget price of Rs280-320 per kg.

Similarly, the price of masoor, moong and mash pulses surged to Rs300-340, Rs300-360 and Rs540-600 per kg from Rs280-320, Rs280-320 and Rs530-580 per kg, respectively.

Karachi Wholesale Grocers Association Chairman Rauf Ibrahim said the wholesale prices of various pulses have jumped by up to Rs94 per kg after the budget.

However, retailers have yet to fully pass on the sharp increase in various pulses, especially in gram pulses of premium grades, whose wholesale prices have swelled by Rs89-94 per kg.

He said the wholesale price of kabuli chana (white gram) is now Rs410 as against Rs362 per kg while small channa has risen to Rs272 from Rs250 per kg. The wholesale price of black gram (kaala chana) price is now tagged at Rs275 as compared to Rs217 per kg.

Mr Majeed, the commodity importer, said another reason for the price hike in black gram (desi chickpeas) is extensive buying by India due to its crop damage. Besides, India has also removed 60pc import duty on desi chickpeas’ import to meet local demand.

Due to India’s massive buying, the world market rate of black gram has swelled to $900 per tonne from $650. Australia also has a limited quantity of black gram as its new crop will arrive by September/October.

However, he claimed there is no serious crisis in other pulses as the world market rate of various pulses had either stayed unchanged or dropped in the last month.

Pakistan imported 1.115 million tonnes of pulses worth $736m in 11MFY24 compared to 1.240m tonnes at a cost of $887m in 11MFY23.

Retailers said the sugar price has also increased to Rs160 from Rs150 per kg given the high demand in Muharram.

The country’s sugar production slightly increased to 6.766mn tonnes during July-April FY24 from 6.654mn tonnes in the same period last fiscal year.

Published in Dawn, July 14th, 2024