On Tuesday, the utility stores have displayed new subsidised rates of pulses. Under the new relief package for consumers, gram pulse, mash (washed), moong (washed) and masoor (washed) are now available at Rs30, Rs58, Rs53 and Rs31 per kg, respectively, as compared to the pre-budget rates of Rs42, Rs70, Rs65 and Rs37 per kg.
In the local markets, gram pulse, mash, moong and masoor are available at Rs38-40, Rs68-72, Rs60 and Rs36 per kg, respectively.
However, consumers are not satisfied with the quality of utility stores’ pulses because they take more time to tender and also lack taste as compared to the pulses available in the open markets.
Currently, the Utility Stores Corporation (USC) runs 50 regular outlets in Karachi as compared to 40 outlets in February. Market analysts think that hardly five to 10 per cent people out of country’s total population of around 160 million buy essential items from the utility stores.
Retailers are not worried over the government’s move of providing subsidised pulses at the utility stores. “Only 50 utility stores cannot compete with 20,000 retail shops in the city,” Farid Qureishi, general-secretary of the Karachi Retail Grocers Group, said.
“Frankly speaking, our sales will not be hit because of a marked difference in prices of pulses, as people know about the quality in the government’s stores,” he said, claiming the quality of pulses, sugar, atta, etc., sold at the retail shops is far superior to utility stores.
Mr Farid said that buyers of sugar from the utility stores were found selling the commodity to retailers, hoteliers and small restaurants at a profit of Rs5 per kg. “Consumers do not have enough time for standing in long queues.”
“We procure high quality essential commodities from wholesalers and millers to the satisfactory of consumers,” he said.
Market sources said the utility stores might witness a huge rush of consumers for pulses in case a gap between market and utility stores’ prices persist.
SUGAR: More than four months have passed, but rush at the utility stores for sugar has yet to subside despite an increase in sugar quota to 32,000 tons from 11,000 tons in January. People are being asked to buy other essential items first and then they will get sugar.
In Gulberg, a utility store official was seen forcing the consumers to make a shopping of Rs70 in order to be eligible for a two-kg sugar bag. For a four-kg sugar bag, a buyer has to make a shopping of goods worth Rs150.
In Liaquatbad, where sugar is not available in the evening, an official of the utility store said the management had imposed a condition under which a consumer can get two kg bag of sugar after shopping of Rs50 and four kg bag for Rs100 shopping.
People still appear crazy for the white crystal because of Rs9.50 per kg difference. In February, the difference was Rs12.50 per kg. Majority of consumers are still not getting sugar from the utility stores because of non-availability of the commodity.
Consumers complain that utility stores’ sugar require two tea spoon to bring taste to the tea as compared to one tea spoon of open market sugar. Utility stores’ sugar is thin as compared to large crystal sugar available in the open market. In case sugar prices are not dropped in the local markets, the situation at the utility stores will remain same.
It has been noticed that many people come at the utility stores with two to three friends or family members so that they could buy more sugar bags. There are also reports that some shopkeepers have hired volunteers who make several rounds of various stores to build up stocks and then sell them to the shopkeepers at a commission.
In many cases it has been seen that a truck carrying sugar arrived at the utility store and in a few minutes the entire lot is sold out, especially in the district Central where caterers are very active.
Masood Alam Niazi, Sindh-Balochistan zonal manager of the USC, dispelled the impression created by retailers that the quality of pulses and sugar is sub-standard. “The big difference and high quality lure the people to buy sugar from the utility stores. The condition to have other commodity first before purchasing sugar is aimed at discouraging market players and shopkeepers.”
The utility stores are providing sugar to the consumers procured from the Trading Corporation of Pakistan and local millers so how can it be different from the open market sugar, he remarked.
In Karachi, 100,000 packets of two-kg sugar are being supplied daily in 50 utility stores, besides 30 sale points are being supplied sugar through mobile service compared to 40,000-50,000 packets in February 2006.
In the Quetta region, 55,000-65,000 packets are being supplied daily as compared to 30,000 packets in February, while 50,000-60,000 packets are being supplied daily in the Sukkur region as against 30,000-35,000 packets in February. Around 50,000-60,000 packets of sugar are being supplied in the Hyderabad region as compared to 35,000-40,000 packets in February.
Hyderabad region has currently 22 stores and 30 special stores as compared to 21 stores with five special stores selling only sugar and atta in February. Sukkur has 25 stores and 35 special stores as against 20 stores with five special stores for two hot selling commodities in February. Quetta has 22 stores and 35 special stores.
“It is true that these stores are not sufficient to cover huge population. There should be one store for 32,000 customers,” Mr Niazi said.
However, he did not agree that only a small fraction of the population prefers to shop from the utility stores. “As many as 40 per cent of the population now buy essential items from 550 regular utility stores and 550 sales points all over the country,” he said, adding: “Our market share will further improve when the network expands in tehsils and opening of franchise stores.”
He said the utility stores might not witness a chaos-like situation in pulses because supplies from the USC had been tripled and the stores were discouraging bulk shopping. “Prices of goods at the utility stores are cheaper by 5-10 per cent than the open market rates,” Mr Niazi added.
Meanwhile, Minister for Industries and Production Jehangir Tareen on Tuesday said the government would open letter of credit (LC) to import 150,000 tons of gram pulse to bring its price down in the open market, adds APP.
Talking to reporters during a visit to a utility store in Sector G-9, he said it would be available in the market by July or August.
“No government in the past has taken measures to control the prices of pulses and the credit goes to the present government for reducing pulses’ prices by Rs10 a kg,” he said.
“We have done it within a day after the reduction was announced in the budget,” he added.
Replying to a question about sugar, he said the Trading Corporation of Pakistan was importing 800,000 tons to stabilise sugar prices in the market.
