KARACHI, May 31: The cost of living of common man has further increased with a new wave of soaring prices of essential commodities led by wheat flour, rice, sugar, pulses etc at a time when the new budget is just a week away.

Despite a decline in wholesale prices of rice and pulses, retailers have not passed on the impact to the consumers. The end-users are at the mercy of the retailers, who are fleecing them despite the official price list issued by the city government showing reduced rates as compared to the market ones.

In sharp contrast to the actual retail rates prevailing in the market, the retailers have been violating the official prices fixed by the city government.

Majority of the retailers have not put on display the official price list and those who do, are not selling the items on the control rate. They claimed that the city government had fixed the rates without checking the wholesale rates prevailing in the market. As the wholesale price of rice had fallen, basmati exports during July-April 2007-08 fetched 21 per cent more in value and 45 per cent more in quantity. These were worth $653 million (908,736 tons) as compared to $450 million ($751 million) in the same period of 2006-07.

In April 2008 alone, total rice exports (basmati and others) were recorded at 471,631 tons ($228 million) as compared to 319,445 tons ($156 million) in March 2008 and 294,197 tons ($107 million) in April 2007.

Almost all the varieties of flour became costlier owing to rising wheat prices, tussle between the flour mills and the Sindh government over price issue and slow lifting of wheat from the interior Sindh.

The price of chakki atta has fallen to Rs25 from 30 per kg in some areas like Ranchore Line, Musa Lane, Gole Market (Nazimabad), Aisha Manzil, Hyderi, North Karachi and Malir Model Colony.

A spokesman of Karachi Atta Chakki Association said that some 100-150 chakki owners in these areas sold the flour at reduced rate out of total 1,500 chakki owners in the city.

He said some 1,500-2,000 wheat bags of 100 kg were provided to 100-150 chakki owners in the last two days. The association has demanded 4,000-5,000 bags at the rate of Rs2,100 per 100 kg from the Sindh government.

Senior vice-president Karachi Wholesalers Grocers Association (KWGA) Malik Zulfiqar Ali said that the wholesale rates of all pulses had fallen by Rs6-8 per kg in the last one week due to low demand. For example gram pulse rate fell to Rs48-49 from Rs55-58 per kg. However, he said that the rates of pulses in global markets had been going up.

Similarly, he said the wholesale price of various rice varieties had also dropped by Rs8-10 per kg.

The impact of falling wholesale prices of pulses and rice have not been felt at the retail stage and shopkeepers continue to charge higher prices on the pretext that they have procured the commodities at higher rates.

Interestingly, the Karachi Retail Grocers Group (KRGG) has issued the price list for May 31 and compared it with prices prevailing on May 1, showing higher wholesale rates of pulses. The association has not mentioned the wholesale rate of flour varieties and rice.

Except for tomato, vegetable items like potato, onion and ginger had become dearer. Sugar prices have surged by Rs5 per kg.