KARACHI, Dec 31: A sharp increase in the cost of groceries outstripped the benefit of income growth people may have had in 2008. Though the rate of price increases seems to have slowed, many basic foodstuffs like flour, rice and lentils are far more expensive than they were a year ago.
The year saw an increase of 29 per cent to 119 per cent in prices of wheat flour followed by 10 per cent to 108 per cent rise in prices of soaps and detergents and 10 per cent to 73 per cent rise in prices of pulses. Despite the price slash of imported items and their raw materials in world markets followed by frequent cuts in petroleum prices particularly towards the year’s end, retailers are still charging higher prices.
The price escalation figures compiled from January to December by the Karachi Retail Grocers Group, besides indicating the highest rise in prices of wheat flour, pulses, and soaps and detergents, show an increase of 36 per cent in sugar prices, two per cent to 56 per cent in tea prices, two per cent to 29.41 per cent rise in rice varieties, 2.4 per cent to 18.15 per cent in branded ghee and cooking oil prices.
A bag of 10kg flour that was priced at Rs155 in January 2008 is now available at Rs340 to Rs350, while the price of Atta No 2.5 has risen from Rs16 a kilo to Rs32 a kilo during the year. Chakki and fine Atta are now available at Rs36 and Rs34 a kilo as compared to Rs28 and Rs20 a kilo respectively in the year’s beginning.
The prices of Masoor pulse (No 1) and Masoor whole have increased from Rs76 and Rs62 a kilo to Rs122 and Rs105 a kilo. Gram pulse and Arhar prices have risen from Rs44 and Rs77 to Rs65 and Rs82, respectively. The price of Maash Dhuli (white lentil split) has increased from Rs60 a kilo to Rs75 a kilo. The price of green gram remained unchanged, while the price of Basin (gram flour) increased from Rs45 to Rs65 a kilo.
In rice, Karnal Shaheen, Karnal Basmati and Karnal Basmati Super, which were available at Rs75, Rs80 and Rs85 a kilo, are now retailed at Rs90, Rs100 and Rs110, respectively. Irri-6 price has increased from Rs25 to Rs30 a kilo. Basmati Sela is priced at Rs90 as compared to Rs70 a kilo.
Ghee, cooking oil
The price of five-litre Dalda cooking oil, which was Rs625 in January, has risen to Rs680 in December. Five-kilo tin of Soya Supreme ghee is now available at Rs645 as compared to Rs568 in January.
The manufacturers of branded items have been frequently passing the impact of falling palm olien rates to their domestic prices from October this year, though the rates are still high. The companies are still holding back a major impact of falling palm olien rate in Malaysia and Indonesia. The makers of 16-kilo ghee and oil tins have reduced the rates keeping in view the daily fluctuation of palm olien in world market. The 16-kilo ghee and cooking oil tins can be purchased at Rs1,370 and Rs1,550 as compared to the current price of Rs1,560 and Rs1,680, respectively.
In tea, 200 grams of Yellow Label, 250 grams of Supreme and 200 grams of Tapal Danedar are now sold at Rs98, Rs88 and Rs80 as compared to Rs64, Rs64 and Rs57 in January.
Spices and sugar
There is a mixed trend in prices of spices. Red chilly whole and minced prices have fallen to Rs130 and Rs140 a kilo from Rs150 a kilo each in January. The prices of black pepper and cumin seeds have tumbled to Rs320 and Rs250 a kilo from Rs350 and Rs270 a kilo, respectively. Powdered coriander is sold at Rs170 a kilo as compared to Rs100 a kilo, while coriander whole is available at Rs165 as compared to Rs110 a kilo.
Sugar and Gur prices have increased from Rs25 and Rs30 a kilo to Rs34 and Rs40 a kilo, respectively.
In soaps and detergents, one-kilo packs of Surf Excel, Brite and Ariel that cost Rs150, Rs145 and Rs150 in January are sold at Rs210, Rs190 and Rs230, respectively. Sufi washing soap price has risen from Rs15 to Rs22, while many retailers have started charging Rs25 for it, saying that the company is increasing prices. Lux soap (125 grams) now sells at Rs35 as compared to Rs24. Safeguard big bar is available at Rs38 as compared to Rs26. Lifebuoy soap (135 grams) sells at Rs22 as compared to Rs16.
‘Consumers unaware’
Karachi Wholesale Grocers Association chairman Anis Majeed said the price of pulses in world market had dropped by half during the last three to four months but the rupee’s devaluation by 25 per cent against the dollar nullified the impact on domestic prices. Besides, he said, an open competition among wholesalers existed in Jodia Bazaar and other main markets, which unfortunately was not there with retailers.
Consumers are not aware of the changes in wholesale rates. As a result, only a fraction of a major cut in wholesale prices has been passed to the end users.
Despite a huge production of 6.5 million tons of various rice varieties, consumers are still paying high prices. However, he hoped that the prices of flour, rice and pulses could fall earlier next year owing to the improved production across the world.
The prices of West Texas Intermediate Crude Oil and Arab Light Crude Oil have declined by 64 and 66 per cent in 2008 as compared to 2007 but the local prices of petroleum products are still high by seven to 52 per cent.
Karachi Retail Grocers Group General Secretary Farid Qureishi said the manufacturers had been very lethargic in passing on the impact of steep fall in world and domestic oil prices coupled with raw material and finished product prices. The government should take notice of this unprofessional way of depriving consumers. He said that ghee and cooking oil prices had not declined at par with the massive fall in palm olien rates. Same was the case with tea prices, he observed.
