KARACHI, June 12: The government’s claim of a fall in prices of pulses and sugar by 10-20 per cent after the budget has proved unrealistic, as retailers continue charging the pre-budget rate owing to no change in wholesale rates.
Prime Minister Shaukat Aziz claimed the other day that sugar and pulses had become cheaper, but in practical terms consumers are yet to see a decline in prices at the retail side after the budget.
Even the announcement of Rs8 per kg subsidy on dal channa on Saturday has failed to make any impact in the market. The government has only reduced prices of pulses at utility stores by Rs10 per kg in the budget. Only a slight fraction of the population reaps the benefit as 90 per cent buyers are still on the sugar hunt because of Rs9.50-10.50 per kg difference, compared with the retail market rate. The pre-budget retail prices of dal channa (Rs38-40), masoor (35-36), moong (sabit) (Rs35), moong (washed) (Rs58), moong (chilka) (Rs56), mash (Rs66), arhar (Rs43), kabuli channa (Rs60) and black gram (Rs38) per kg still existed till Monday.
The pre-budget wholesale price of dal channa was Rs35-36 per kg followed by Rs32 for moong, Rs30 for moong (sabit), Rs55 for moong (washed), Rs52 for moong (chilka), Rs62 for mash, Rs40 for arhar, Rs53 for kabuli channa and Rs35 for black gram, said Farid Qureishi, general-secretary of the Karachi Retail Grocers Group.
Sugar still sells between Rs37 and Rs38 per kg in the market despite prime minister’s claim that 700,000 tons had been imported by the Trading Corporation of Pakistan and 400,000-500,000 tons by the private sector. The country has 1.2 million tons sugar stocks and per month consumption ranges between 300,000 and 325,000 tons.
However, the sugar price is declining slightly at the wholesale level but its impact is yet to be seen at the retail stage. At present the wholesale price of sugar is Rs34.20 per kg. How can retailers bring down prices of pulses when they are getting them from wholesalers at the pre-budget rate? Mr Qureishi asked.
Wholesalers say that retailers are quick enough to make an upward change in rates whenever any increase occurs at the wholesale side but they take too much time in slashing the rate when prices come down at the wholesale market. They said sugar was selling at Rs34.20 per kg at the wholesale level but the retailers were still charging Rs37-38 per kg.
The government is now focusing on import of gram (whole) and mash. The TCP will import 50,000 tons gram pulse while the private sector will bring 100,000 tons. The TCP has already floated tenders for import of 10,000 tons of mash (whole).
The government is yet to issue a notification for Rs8 per kg subsidy for commercial importers of pulses, Anis Majeed, former chairman of the Karachi Wholesalers’ Grocers Association, said.
He said currently the rate of Ethiopian gram ranged between $525 and $535 per ton which meant that it would cost Rs34 per kg in the country, but after the subsidy of Rs8 it would be selling at Rs26-27 per kg. He said wholesalers and importers would prepare dal from this. After Pakistan’s interest in gram pulse, the rate in Ethiopia has surged by $25-30 per ton.
The price of Australian gram is tagged at $575 per ton which means that the landed cost will touch Rs37 per kg and after adding the subsidy of Rs8 it will be selling at Rs29-30 per kg, Mr Majeed said, adding that mash is priced at $640-650 per ton as compared to $620 a few days back. It will cost Rs43 per kg in Pakistan.
The local consumption of gram pulse is estimated at 650,000 tons while production stands at 300,000 tons, with last year’s carryover stock of 150,000 tons, leaving a shortfall of 150,000-200,000 tons. Mash annual consumption stands at 75,000 tons as compared to production of 20,000 tons this year, leaving 60,000 tons deficit to be met through imports. However, so far some 15,000 tons have arrived.
Mr Majeed said pulses stocks in the world market were also short and foreign countries were increasing rates after watching the demand coming from Pakistan and other countries.
He said there were chances of a decline in gram pulse rates after the Rs8 per kg subsidy but ruled out possibility of a price fall in other pulses.
