Banking on COVID-19: govt comes down hard on profiteers

Prices of carbopol, isopropyl alcohol and plastic bottles increased 10 to 15 times

LAHORE: The efforts and claims of a severe ongoing crackdown by Lahore police regarding hoarding and overcharging of masks and sanitisers seem to bring to fruits keeping in view the situation of the markets.

Face masks literally had disappeared from the provincial metropolis. Citizens while talking to The Express Tribune shared their ordeal that they literally have visited almost the major medical stores and pharmacies but could not have spotted it.

Rai Asad, a citizen, while talking to The Express Tribune said that he visited at least 35 medical stores but could not find a face mask. This is the situation of common citizens. The situation is not different for doctors and paramedical staff directly linked with medical practice and hospitals. They too are finding it hard to get hold of the face masks and sanitisers.

Amidst this precarious situation, hoarded and black markets are making gold out of face masks and hand sanitisers. They are selling the equipment at multiplied prices. A face mask which was available for Rs5 a week ago is now being sold for Rs60-70 and at a few points for over Rs100.



Meanwhile, Lahore police claimed to have arrested as many as 207 accused of violation of Section 144 imposed by the Punjab government in the context of impending coronavirus and profiteering on masks and sanitisers.

A total of 72 cases were registered for violation of Section 144 and overcharging on face masks and sanitizers. City Division Police arrested 68 while Cantt Division 22, Civil Lines Division 40, Sadar Division 28, Model Town 01, Iqbal Town Division 33 accused involved in a violation of Section 144.

DIG Operations Lahore Rai Babar Saeed said under the ongoing special crackdown on the shopkeepers for overcharging on masks and sanitisers. So far, as many as 24 FIRs have been registered against profiteers.’

The DIG operations warned that no one would be allowed to overcharge citizens in the wake of the coronavirus pandemic. Saeed said citizens could also file complaints at the police helpline 15 if someone demands high prices of masks and sanitisers. DIG Operations Rai Babar Saeed directed all Divisional SPs to speed up action against profiteers and hoarders ensuring compliance with the Punjab Government directives.

CCPO Lahore Zulfiqar Hameed and other Lahore Police top brass along with other stakeholders have also conducted meetings for the purpose. Hameed, three weeks back, had also shared a video message for the public for social media and mainstream media to inform the police on 15 in case of overcharging or hoarding of masks or sanitisers.

Meanwhile, citizens are facing difficulties in the city due to the ongoing threat of coronavirus yet profiteers continue minting money.

After sanitisers and masks were made expensive, profiteers have also significantly increased the prices of the ingredients used in manufacturing sanitisers.

The prices of carbopol, isopropyl alcohol and plastic bottles in the chemical market have drastically increased by 10 to 15 times, due to the certain citizens making sanitisers in their homes.

Due to the closure of factories in China and Italy, the prices of chemicals used in the sanitisers have increased manifold in the global market.

As per details obtained by The Express Tribune, the disappearance of sanitisers from markets, the ongoing price hike and the added trouble of the influx of fake sanitisers, has forced consumers to manufacture their own sanitisers.

Due to this, the price of the chemical carbopol, used in sanitisers, increased from Rs1,700 per kg to Rs18,000 per kg.

Similarly, the price of isopropyl alcohol increased from Rs210 per kg to Rs600 per kg. Isopropyl alcohol is used instead of ethanol because ethanol can only be sold to permit holders. Similarly, the price of glycerin increased from Rs250 per kg to Rs600 per kg.

A plastic bottle of Rs3 is being sold at Rs20, while a plastic bottle which was being sold at Rs5, is now being sold at Rs50.

Sources added that carbopol is imported from China and Italy in Pakistan, while isopropyl alcohol is commonly imported from Taiwan and China.

As the production of these chemicals halted in China and Italy, the prices of these chemicals have skyrocketed in the global market. Pakistani importers used to import carbopol from China at $3 per kilogramme. Now, the import price is $12 per kilogramme.

Similarly, the price of imported carbopol from Italy had increased from four euros to 18 euros per kg. Earlier, isopropyl alcohol was imported from China and Taiwan for $600 per tonne. Now, the price has risen to $1,700 per tonne. After duty and other taxes on the import of these chemicals, the price in the Pakistani wholesale market has gone up significantly. Since then, citizens are unable to afford their purchase at the retail level.

The demand for sanitisers had reportedly been increased by a hundred times due to which the production of companies manufacturing authentic and reliable sanitisers has decreased.

These factories have increased their production but are not meeting the market demand. Profiteers began to make fake sanitisers on a large scale, forcing people to start making sanitisers in their homes and offices.



As a result, chemical dealers in the retail market have begun to receive favourable prices for the chemicals used in sanitisers.

In this regard, Pakistan Chemicals & Dyes Merchants Association (PCDMA) Punjab President Khuwaja Khawar Rasheed said that the prices of chemicals in the global market had increased which led to the huge price hike in Pakistan as well. “Import is decreasing and demands are on the rise.”

However, at wholesale and retail levels, dealers and shopkeepers are multiplying prices often by making illegal profits, which is condemnable, he added.

He maintained that sellers of these chemicals should be considerate of the public’s needs in this dreadful situation and sell the chemical at legitimate profits.

Published in The Express Tribune, March 21^st, 2020.