THE wholesale commodity market witnessed minor price fluctuations but traders said it had nothing to do with the changes in tax rates and duties announced in the budget 2012-2013.

They said the Dandia Bazaar witnessed changes in price on account of improved imports, uninterrupted local supplies coupled with lingering low consumer demand.

One of the noticeable developments in view of improved supplies was the slight cut in flour prices by millers on June 8. The cut in prices was attributed to improved supply of wheat in the wholesale market.

A miller said the new rate of 50kg flour bag (No.2.5) was Rs1,490 as compared to Rs1,525 earlier. The decline in rate of 50kg bag of fine flour and super fine flour (maida) was Rs1,645 and Rs1,660 from Rs1,655 and Rs1,670 respectively.

For the last few weeks price of wheat was stable owing to improved supplies from Punjab and Sindh which had further improved stocks in the wholesale market.

The 10kg bag of flour (No.2.5) produced by mill was now priced at Rs298 as compared to Rs305 last week.

While analysing the impact of budget on prices, Chairman Karachi Wholesalers Grocers Association (KWGA), Anis Majeed said: “Frankly speaking, the new budget has been made keeping in view the interest of consumers.”

The slight upward change in sugar rate is because of pre-Ramazan demand coupled with opening of tender by the Trading Corporation of Pakistan (TCP) last week. Some retail market buyers had turned up to purchase sugar for Ramazan which is starting from next month.

Many retailers despite having old stocks purchased at lower prices were charging Rs58 per kg in the markets as compared to Rs55 per kg last week.

Anis said the price of masur and mash had dropped due to over imports. The wholesale rates had not yet seen any flare up in view of the persistent devaluation of the rupee against the dollar.

The impact of costlier imports on account of depreciating rupee against the greenback might be witnessed in the future. In case the price of pulses go up in the international market prices of local pulses would rise further.

The Economic Survey had presented a grim picture of production of local pulses. Gram production during July-March 2011-12 fell to 291,000 tons as compared to 496,000 tons in the same period last year owing to unfavourable weather conditions.

Production of masoor declined to 11,600 tons as compared to 13,300 tons last year, mash production also dropped slightly to 10,900 tons from 11,300 tons while production of moong improved 22 per cent to 93,000 tons from 76,200 tons last year.

Retailers in various localities were making huge profits from consumers who were unaware of the wholesale prices. The wholesale rate of gram pulse was Rs93 per kg but retailers were charging Rs110-125 per kg, price of moong was Rs108 per kg but its retail price hovered around Rs115—140 per kg in various markets, while price of masur being Rs62 per kg, the consumers were paying Rs86-100 per kg, mash available at Rs82 per kg in the wholesale rate was selling between Rs93 and Rs100 per kg at retail shops.

Traders in their post-budget reaction had not anticipated any cut in prices of pulses and wheat rates in view of no sales tax.

Ghee and cooking oil prices for 16 kg/litre tins showed slight decline in prices due to falling oil prices in the world markets but the packers were yet to pass the benefit to consumers.

A retailer claimed that the price of 16 kg ghee tin had plunged to Rs2,650 from Rs2,700 followed by decline in 16 litre ghee tin to Rs2,480 from Rs2,545 last week.

Palm olien rate was now $1,010 per ton C&F as compared to $1,062 in the third week of May while RBD palm oil rate dropped to $980 per ton from $1,050 per ton. —Aamir Shafaat Khan