KARACHI, May 1: Consumers’ monthly spending on essential commodities has got a severe jerk owing to an all-round increase in prices of pulses, sugar, beef, mutton, potato, tomato, branded tea, loose ghee and poultry. Only onion and garlic saw a fall in their prices.
As the Oil and Gas Regulatory Authority on Sunday raised prices of petroleum products by two to seven per cent, the decision is bound to see a price hike in essential commodities in the current month, besides transporters will demand higher rates for intra and inter city goods shipment.
A leading vegetable dealer said prices of greens might increase by Rs1-2 per kg this month in view of the diesel price hike.
Inflation during July-March 2005-06 surged to 8.25 per cent over the same period last fiscal year. But official statistics of inflation measured by the Consumer Price Index does not reflect the true picture of inflationary trend in prices of essential items which have been under tremendous pressure owing to rising oil prices and consumers think actual inflation has crossed the double-digit figure.
A random price survey (from April 1 to May 1) reveals that beef and mutton sellers are having a party time owing to a switchover by consumers from white meat to red meat in view of lingering bird flu scare.
In many areas mutton is being sold at Rs250-260 as against Rs240 per kg last month, while beef (with bones) is being retailed at Rs140 as against Rs130 per kg. Beef without bones sells at Rs170 as compared to Rs160 per kg last month.
Market sources informed Dawn that some meat sellers were mixing lamb meat with mutton. Demand for beef and mutton has peaked as people are avoiding buying chicken.
However, poultry people are still confused over the losses owing to losing consumers’ confidence on white meat. They have again raised prices to Rs54 from Rs48 per kg last week to show that demand for chicken has again surged. The official rate of poultry meat ruled at Rs90 from Rs80 per kg. However, many retailers are bound to sell meat under-cost owing consumers’ reluctance.
Poultry traders make changes in rates twice a week, but in the same time they are trying to recover some losses by increasing prices. The poultry industry is reported to have suffered a loss of Rs10 billion in the last two months since bird flu scare has gripped the industry.
Potato price has surged to Rs17 from Rs16 per kg, while tomato becomes costlier by Rs6 to Rs16 from Rs10 per kg.
Haji Shahjehan, President of the Falahi Anjuman Wholesale Market, New Subzi Mandi, said potato was selling at last month’s level of Rs14-15 per kg, but retailers were charging higher prices. He said in some posh areas a good quality potato was selling at Rs20 per kg.
He said tomato price had come under pressure due to end of supply from the crop in nearby areas of Karachi. In Subzi Mandi, it is selling at Rs10 as compared to Rs5-6 per kg last month. The supply from Larkana crop has started arriving in the local markets.
Onion and garlic prices have dropped to Rs9 and Rs60, respectively, from Rs10 and Rs70 per kg last month. Ginger price remains unchanged at Rs60 per kg.
Mr Shahjehan said onion price had shown stability as new the Balochistan crop had commenced. Besides, some stocks from the Sindh crop are available in the Subzi Mandi at Rs4-5 per kg. Onion from the Balochistan crop is selling at Rs6 per kg.
He said garlic price had dropped due to arrival of the commodity from Balochistan. It is selling at Rs25-30 per kg in the Subzi Mandi. Chinese garlic is also available at Rs35 per kg.
Moong and mash pulses remained under pressure last month owing to shortage and costlier imports from various countries, while gram pulse price is on the rise because of lower crop size. Demand for these commodities may increase in the wake of bird flu scare.
Anis Majeed, adviser to the Karachi Wholesale Grocers Association, said wholesale prices had started falling after the arrival of moong and mash from Myanmar last week. However, retailers are passing on the benefit to the consumers. He said the price of gram pulse might remain under pressure owing to very low production this year.
Although the price regulators came out with a notification of Rs28 per litre last week, milk is still being sold at Rs30 per litre. Now the city government is planning to take action against milk sellers for overcharging but it may not be going to work as the price-hike issue has become old by one and half month.
Meanwhile, leading tea packers have raised prices of their brands owing to an increase in prices of Kenyan tea.
