KARACHI, March 1: Price-hike in rice, branded ghee, cooking oil, fresh milk and poultry products dominated last month in terms of putting burden on consumers while there was a bit relief in the prices of pulses, vegetables and flour varieties.

A comparison of prices between Feb 1 and March 1, 2007, showed an unusual jump in prices of all varieties of rice because of huge international demand of Pakistani rice caused by low production of Indian basmati, coupled with anticipation of production fall in various local varieties of rice by 15-20 per cent this year.

In branded ghee and cooking oil, all the producers have already alarmed the general public of an increase in prices (Rs4.8 to Rs6 per kg / litre) from March in view of rising palm olein prices in the world market.

So far, the government is playing the role of a silent spectator as branded packers have made the third increase in prices in the last six months.

Poultry industry people have also been playing a `game of demand and supply gap’ since January 2007.

If the current poultry price of Rs88 per kg is taken into consideration, the net increase comes to Rs20 per kg since January.

Neither the federal government, nor the provincial governments have taken measures to find the ground reality from stakeholders who are bent upon playing havoc with prices.

The prices of vegetables remained pegged to Feb 1 level because of frequent supplies from production areas, coupled with the start of new crop and regular imports.

Onion prices remained stable at Rs20 per kg as of last month due to arrival of the commodity from Punjab’s new crop, while Sindh crop is also catering for the countrywide consumption.

Pakistan has seen an onion crisis since September 2006 because of heavy rains and thunderstorm in July-August 2006 that devastated over 80 per cent of crop in Sindh.As a result, the country had to import 250,000-300,000 tons of Indian onion between September 2006 and till to-date.

“Now onion crisis is somewhat over in view of declining trend in prices,” president, Falahi Anjuman Wholesale Vegetable Market, Haji Shahjehan, said.

Onion prices were reeling at Rs30-35 per kg a few months back, but it started falling from February.

He said currently onion is not being exported. It is available at Rs11-12 per kg at wholesale, but retailers are charging Rs20 per kg depending on their high profit margin and area location.

Because of uninterrupted supplies from the Punjab’s bumper potato crop, rates remained unchanged in the last one month despite the fact the commodity is also being exported to Iran, Malaysia, Sri Lanka etc. Its price hovers between Rs8 to 9 per kg at wholesale, Shahjehan said.

Arrival of tomato from Sindh’s new crop kept the rates pegged to last month’s level at Rs10 per kg.

Tomato is selling at Rs5 to five per kg at wholesale, he said.

Wholesale garlic rates had been maintaining at Rs50 per kg in the last one month thus keeping the retail rate unchanged at Rs60 per kg. Garlic is being imported from China while the market also has locally produced garlic.

Similarly ginger is also being imported from China and Indonesia and its wholesale rates are tagged at Rs25, but retailers are charging Rs40 per kg from consumers.

In pulses, a phenomenal increase in prices a few months back had curtailed the buying activity.

As a result, the rates have either tumbled down or remained stable in the last one month because of its thin demand.

Chairman, Karachi Wholesalers Grocers Association (KWGA), Anis Majeed said that even importers, who had brought costlier pulses, are now suffering losses by throwing in the market below the cost.

He said the new crop of gram pulse for 2006-2007 is expected in the first week of April and is estimated to be 800,000 tons compared to 350,000 tons in 2005-2006 and one million tons in 2004-2005.

The government had imposed a 35 per cent regulatory duty on gram pulse export.

There is a need to remove this duty as in case it is not done, growers would suffer losses and would not be going for gram pulse production next year.

He said last year the government had to provide millions of rupees subsidy on import of gram pulse to keep prices under control.

The government should think of giving some relief to growers.

He said prices of various varieties of rice had declined by Rs4 to five per kg at wholesale in the last four to five days because buyers and traders had suspended rice buying which had gone up sharply.

Fresh milk has become dearer by Rs2 per litre and the city government appears to be least interested in safeguarding the interests of consumers as retailers have filed a case in the high court against the government for fixing price of Rs28 per litre and action taken against the retailers.

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