KARACHI, Feb 17: Just a few days before the Ashura, market players have resorted to increasing the prices of certain essential items, like milk, onion, gram pulse, rice, wheat flour and sugar , to make a windfall out of the sudden increase in the demand of such items on the occasion.
A large number of people in almost all the localities in this city, like in other parts of the country, prepare Haleem, Khichrra, Sharbat (soft drink), etc on the eve of Ashura for distribution among the poor, as well as faithful, relatives and neighbours. Usually, thousands of people throng markets a couple of days before the Ashura to buy the ingredients of such dishes and drinks.
Citizens received with shock the news of an increase of Rs3 per litre in the price of fresh milk as announced unilaterally by dairy farmers on Wednesday. The new rate would be Rs28 per litre, they declared.
The city government has already rejected the dairy farmers demand for any increase in the rate of fresh milk. Although the new rate is supposed to applicable from March 1, many milk sellers started charging the higher price the moment the announcement was made.
It may be recalled that a few weeks back, dairy farmers had sought the city government's permission for an increase in milk price, citing increased transportation cost due to the hike in petroleum prices, a rise in buffalo price from Rs40,000-45,000 to Rs60,000 each, as well as an upward trend in fodder prices, labour charge.
However, City Nazim Niamatullah Khan had turned down their demand about two weeks back after finding their claim about overheads incorrect. Mr Raeesuddin Paracha, EDO Enterprise and Investment Promotion, when contacted, described the dairy farmers' move to raise the milk price 'illegal', and pointed out that only eight months back, they had raised the price from Rs22 to Rs25 per litre without the approval of the city government.
"Still, the official price of fresh milk is Rs22 per litre," he asserted. Terming the dairy farmers' move unjustifiable, he warned them of legal action, rejecting their claim about the increase in buffalo prices as incorrect.
In spite of showing determination, it is unlikely that the city government would be able to deter the milk traders' bodies from resorting to price-hike because its relevant officers do not have magisterial powers for the purpose.
"We have also submitted a plan to the Sindh government under which action against profiteers could be taken even if the city government officers were not vested with magisterial powers," the EDO said without giving details of the plan.
Apart from milk, other items have also been made dearer on the eve of Ashura. Prices of onion of different quality have surged from Rs8 to Rs10 per kg whereas tomato price, which has remained high over the past few weeks, has increased to Rs30 from Rs24 per kg.
Sugar prices have already gone up to Rs28 from Rs26 of mid-February and Rs23 until then. Gram pulse price has gone up to Rs34 from Rs30 per kg. Irri-6 rice price has risen to Rs17-18 from Rs16 per kg and that of Irri-9 price to Rs21-22 from Rs18-20 per kg.
The wholesale price of wheat rose last week to Rs12.10 per kg from Rs11.60-11.70 per kg whereas wholesale price of flour (80-kg bag) surged to Rs1,020 from Rs990 per bag.
Retailers in Quaidabad and Landhi areas quoted the price of fine atta at Rs16 per kg while a retailer in Tariq Road area gave the price of the same atta at Rs15 per kg. Surprisingly, the atta No. 2.5 is selling at Rs14 in many areas while in Landhi, it is selling at Rs15 per kg.
General Secretary of the Karachi Retail Grocers Group (KRGG) Farid Qureishi contended that only wholesale rates of atta had gone up, claiming that the impact of increase had not been seen at the retail level as yet.
However, in many markets, wheat flour and fine atta have become costlier by one rupee per kg. Market reports suggest that the market forces usually resort to profiteering whenever the demand for certain items flares up on religious occasions.
The price regulators and government do not intervene in this delicate situation when buyers appear ready to procure the commodities without considering the rates. Anis Majeed, adviser of the Karachi Wholesalers' Grocers Association (KWGA) said that imports and supply from local crops both have remained normal.
The increase in transportation charges following a hike in fuel prices may be one of the main factors contributing the surge in the prices of many essential commodities, he suggested. owever, he added, retailers would always take full liberty of fixing the prices of essential items on their own on such religious or other occasions.