WITH the month of Ramazan commencing in a day or two, a price spiral peculiar to the fasting month has kicked off. Due to the high demand of certain food products during the month — fruit, sugar, gram flour, etc — prices begin to shoot up and largely remain high until Eid. Part of this phenomenon has to do with the laws of supply and demand: there is great demand for certain products while supply is limited. Many consumers tend to buy more than they need, while charities and individuals who distribute rations to the needy during the month also procure foodstuffs in bulk. But it is also a fact that greed on the part of unscrupulous traders, and an inefficient official price monitoring mechanism, result in customers being fleeced. While inflation may have come down overall as compared to the past couple of years, many working people are still finding it hard to make ends meet, and the added Ramazan-related price hikes further limit the common Pakistani’s purchasing power, making it difficult for people to arrange a decent iftar or sehr spread.

There can be two major state interventions to help stabilise prices in Ramazan and lend deserving citizens a helping hand. Firstly, direct targeted subsidies provided to low-income citizens can help them arrange decent meals during the month. This can be achieved by cash transfers, or by arranging special bachat or Ramazan bazaars. However, it must be ensured that the products available at these markets are of a reasonable quality. With the Utility Stores facing an uncertain future, the need for such bazaars that stock quality subsidised items is even greater. At the other end, for general consumers, price control mechanisms need to be strengthened to ensure that traders are not profiteering in the name of Ramazan ‘scarcity’. Effective price control is lacking in all provinces, and sometimes during periods like Ramazan the authorities haul up errant traders for overcharging and release the details, but all too often these are theatrical interventions for public consumption. Effective price control is required year-round, particularly in Ramazan. Of course, if the state fails to take tangible measures, consumers can take ‘direct action’, such as the boycott of prohibitively expensive fruit as in the past. But ultimately, the state cannot abdicate its responsibility of cracking down on profiteering.

Published in Dawn, February 28th, 2025