Fruit, vegetable retailers flout official price list
Edible items being sold at prices higher than their notified rates in Ramazan
PHOTO: EXPRESS
KARACHI:
Despite the claims of the provincial government and city administration, profiteering continues unchecked in markets in almost all the localities of the city during this year's Ramazan.
Vegetables and fruits are being sold at rates much higher than those fixed by the Commissioner Office. In the open market, vendors are selling goods at prices about 40% to 50% higher than the notified rates.
Last year's campaign
Last year, the people of Karachi boycotted the purchase of fruit for three days to protest against inflated prices. That was the first of its kind boycott, which was initiated through social media without the support of any political party. Karachi Commissioner Ejaz Ahmed Khan and Transport Minister Nasir Hussain Shah also extended their support to the public campaign. However, many people criticised them for their support, claiming that it was tantamount to acknowledging their failure to control prices.
The campaign met some success as prices of fruits partially lowered after people stopped buying them.
16 Discount Bazaars planned
Inflated prices
Customers who made their way to grocery stores on Thursday and Friday hoping to take advantage of affordable prices of commodities were disappointed. Muhammad Abbas, who was shopping at a small store in Gulshan-e-Iqbal, grabbed a handful of Kabuli chana (chickpeas) but immediately threw them back once he saw the price tag. "It is extremely difficult to find affordable commodities," he complained. At retail stores, high-quality chickpeas are being sold at Rs220 per kilogramme (kg) and low-quality ones are being sold at Rs195 per kg, whereas the government has fixed their prices at Rs150 and Rs125 per kg respectively.
Faizan Ali from North Karachi also claimed that greengrocers and traders in the city were selling fruits and vegetables at much higher prices. Samosa and jalebi, which are some of the most sought after items for iftar, are being sold at much higher rates, he lamented.
According to the commissioner's price list, low-quality samosas should be sold at Rs120 per dozen, whereas high-quality samosas should be sold at Rs168 per dozen. This means that a single high-quality samosa should not cost more than Rs14 and if it is of lower quality, it must not cost more than Rs10. However, according to Ali, bakeries in North Nazimabad are selling a single samosa at Rs18 to Rs20.
The rate of low-quality khajla has been fixed at Rs200 per kg but it is being sold at Rs240 per kg in Shah Faisal Colony, according to a customer, Nabeel.
Ramazan Relief Package: CM orders controlling commodities prices
The situation at makeshift markets is no different. Bananas, which are a popular fruit during Ramazan, were being sold at a makeshift market in Gulistan-e-Jauhar at Rs150 a dozen if they are of high-quality and Rs140 a dozen if they were of regular quality. The commissioner's list priced bananas at Rs110 a dozen for good quality and Rs88 for average quality.
A fruit vendor in front of Darul Sehat Hospital, Abdul Rehman, had the commissioner's price list in his pocket but refused to follow the notified rates. "The commissioner sets the prices sitting inside his air-conditioned room and is unaware of the prices on ground," he said. "We get these bananas at Rs90 and Rs80 a dozen from the market. How can we sell them at the government's rate?" he asked. Every year the commissioner's team comes and chaos erupts in the market but nothing happens, he reasoned.
Price formula
The vice-chairperson of sabzi mandi, Asif Ahmed Shah, who is also a wholesaler, said that a team from Commissioner Office regularly visits their wholesale market and surveys the auction.
Explaining how the prices are notified, he said a meeting was held at Commissioner Office before Ramazan in which it was decided that retail prices of fruits would be fixed after increasing their wholesale prices by 30%. Of the increased 30%, 10% is for the retailers' profit, 10% is to cover transportation and labour costs and 10% is a provision against waste as a certain amount of fruit rots and cannot be sold.
Five Ramazan markets to be set up in Pindi
Action against profiteers
The commissioner was not available for comments. However, according to a press statement issued from his office, as many as seven fruit sellers were arrested in District South and were sent to jail for seven days for profiteering. Fines amounting to Rs175,000 were imposed on profiteers.
In District East, a total of Rs16,000 fine was imposed on shopkeepers who violated the official price list, while in District Malir, fruit sellers were slapped with fines amounting to Rs7,500. Action was also taken against milk sellers who sold milk at inflated prices.
Despite the claims of the provincial government and city administration, profiteering continues unchecked in markets in almost all the localities of the city during this year's Ramazan.
Vegetables and fruits are being sold at rates much higher than those fixed by the Commissioner Office. In the open market, vendors are selling goods at prices about 40% to 50% higher than the notified rates.
Last year's campaign
Last year, the people of Karachi boycotted the purchase of fruit for three days to protest against inflated prices. That was the first of its kind boycott, which was initiated through social media without the support of any political party. Karachi Commissioner Ejaz Ahmed Khan and Transport Minister Nasir Hussain Shah also extended their support to the public campaign. However, many people criticised them for their support, claiming that it was tantamount to acknowledging their failure to control prices.
The campaign met some success as prices of fruits partially lowered after people stopped buying them.
16 Discount Bazaars planned
Inflated prices
Customers who made their way to grocery stores on Thursday and Friday hoping to take advantage of affordable prices of commodities were disappointed. Muhammad Abbas, who was shopping at a small store in Gulshan-e-Iqbal, grabbed a handful of Kabuli chana (chickpeas) but immediately threw them back once he saw the price tag. "It is extremely difficult to find affordable commodities," he complained. At retail stores, high-quality chickpeas are being sold at Rs220 per kilogramme (kg) and low-quality ones are being sold at Rs195 per kg, whereas the government has fixed their prices at Rs150 and Rs125 per kg respectively.
Faizan Ali from North Karachi also claimed that greengrocers and traders in the city were selling fruits and vegetables at much higher prices. Samosa and jalebi, which are some of the most sought after items for iftar, are being sold at much higher rates, he lamented.
According to the commissioner's price list, low-quality samosas should be sold at Rs120 per dozen, whereas high-quality samosas should be sold at Rs168 per dozen. This means that a single high-quality samosa should not cost more than Rs14 and if it is of lower quality, it must not cost more than Rs10. However, according to Ali, bakeries in North Nazimabad are selling a single samosa at Rs18 to Rs20.
The rate of low-quality khajla has been fixed at Rs200 per kg but it is being sold at Rs240 per kg in Shah Faisal Colony, according to a customer, Nabeel.
Ramazan Relief Package: CM orders controlling commodities prices
The situation at makeshift markets is no different. Bananas, which are a popular fruit during Ramazan, were being sold at a makeshift market in Gulistan-e-Jauhar at Rs150 a dozen if they are of high-quality and Rs140 a dozen if they were of regular quality. The commissioner's list priced bananas at Rs110 a dozen for good quality and Rs88 for average quality.
A fruit vendor in front of Darul Sehat Hospital, Abdul Rehman, had the commissioner's price list in his pocket but refused to follow the notified rates. "The commissioner sets the prices sitting inside his air-conditioned room and is unaware of the prices on ground," he said. "We get these bananas at Rs90 and Rs80 a dozen from the market. How can we sell them at the government's rate?" he asked. Every year the commissioner's team comes and chaos erupts in the market but nothing happens, he reasoned.
Price formula
The vice-chairperson of sabzi mandi, Asif Ahmed Shah, who is also a wholesaler, said that a team from Commissioner Office regularly visits their wholesale market and surveys the auction.
Explaining how the prices are notified, he said a meeting was held at Commissioner Office before Ramazan in which it was decided that retail prices of fruits would be fixed after increasing their wholesale prices by 30%. Of the increased 30%, 10% is for the retailers' profit, 10% is to cover transportation and labour costs and 10% is a provision against waste as a certain amount of fruit rots and cannot be sold.
Five Ramazan markets to be set up in Pindi
Action against profiteers
The commissioner was not available for comments. However, according to a press statement issued from his office, as many as seven fruit sellers were arrested in District South and were sent to jail for seven days for profiteering. Fines amounting to Rs175,000 were imposed on profiteers.
In District East, a total of Rs16,000 fine was imposed on shopkeepers who violated the official price list, while in District Malir, fruit sellers were slapped with fines amounting to Rs7,500. Action was also taken against milk sellers who sold milk at inflated prices.