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KARACHI, March 26: The price of a 16-kg ghee tin has increased to Rs1,050-Rs1,065 from Rs1,000-Rs1,015 on March 1, while the 16-kg cooking oil tin price rose to Rs1,150-Rs1,200 from Rs1,100.
Chairman Pakistan Vanaspati Manufacturers Association (PVMA) Amjad Rashid linked the increase to rise in palm olien rate to $652 per ton from $632 on March 19. The local palm olein rate jumped to Rs2,250 per 40 kg from Rs2,200 last week.
The 16-kg tins and one kg pouch account for over 70 per cent market share out of total ghee and cooking oil consumption of 2.7 million tons per annum.
SUBSIDISED GHEE/OIL: Meanwhile, an NGO, Consumer Protection Council of Helpline Trust has claimed consumers have rejected a cooking oil, introduced by the government, as it weighs 900 grams and costs Rs61 on which a six rupee per kg subsidy is being provided. However, the Utility Store’s own cooking oil and ghee is being sold at Rs67 per one kg pouch and not given the six-rupee subsidy.
A spokesman of the Council asked why the government had not extended the subsidy to its Utility Stores Corporation (USC) brand and other brands, thus restricting consumers’ freedom of choice.
He said the subsidy was not given to the consumers as the basic cost is less. The cost of 1,000 grams is Rs67, therefore 900 grams should cost Rs61. After subtracting the subsidy this works out to Rs55 per pouch. This brand is sold at Rs61 per 900 grams.
The USC plans to purchase 20,000 tons of this brand per month and claim subsidy from the government which amounts to Rs120 million per month or Rs1.4 billion per annum, the spokesman said.
Zonal Manager Utility Stores Corporation (USC), Masood Alam Niazi refuted the Helpline Trust claim and said the government was providing the subsidy. The Rs67 per kg pouch was previously priced at Rs73. He said the Trust was trying to create confusion among buyers due to its own interests.
