KARACHI, Jan 5: The rates of 16-kg ghee and cooking oil tins have been jacked up, while the makers of branded ghee and oil are flexing their muscles to come out with fresh increase following surge in international prices of palm olien.
The 16-kg ghee tin is now priced at Rs1,620 as compared to Rs1,510 on January 1. In December it was selling at Rs1,370. The price of 16-kg cooking oil jumped to Rs1,740 as compared to Rs1,650. It was selling at Rs1,550 in December 2008.
A retailer said that some medium-sized units had increased the rate of one kg/litre ghee and cooking oil pouch by Rs5. He added that big companies would follow the suit.
A leading ghee maker, who also produces 16-kg ghee tin, said that palm olien rate in local market surged to Rs2,935 from Rs2,600 per maund (37.25 kg) two weeks back. He said in the world market, the palm oil rate had risen to $660 from $550 per ton two weeks back.
He added that soyabean oil price in global market reached $760 per ton from $655.
The official said that his company had raised the price of 16-kg Tullo ghee to Rs1,550 from Rs1,400.
He attributed the price hike in domestic palm oil to fresh increase in Malaysia and Indonesian markets triggered by demand from India and China coupled with increase in soyabean oil price. Besides, the bouncing back of crude oil to $46 per barrel from $36-37 also made an impact.
Leading packers had reduced the rate of ghee and cooking oil in October to December 2008. For example, Dalda five-kg ghee tin now sells at Rs640 as compared to Rs775 in September. Similarly, Habib five-litre tin is now available at Rs685 as compared to Rs785.
Palm oil rate had peaked to $1,200 per ton in July 2008 but dipped to $795 in September and $670 in October 2008. The local palm oil rate had hit peak of Rs4,200 in July last year, declining to Rs3,600 in September and to Rs2,900 in October 2008.
Market people said that if the branded ghee and cooking oil makers increase the rate then it would be injustice to the already hard-pressed consumers as the big companies had not passed on the full benefit of falling palm oil rate from July to October 2008 to the consumers.
They said that only devaluation of the rupee against the dollar had made the import of palm olien more expensive. However, the falling palm oil rate had nullified the impact of devaluation of the rupee against the dollar in the last three months of 2008. Even the transportation cost had also fallen after sharp cut in
petroleum prices.
