Citizens struggle as prices of essential commodities skyrocket

With no checks and balances or cost controls in place, shopkeepers and wholesalers capitalise on the lockdown

KARACHI: As the lockdown in Sindh, imposed to contain the spread of the COVID-19 outbreak, entered its third week, it has adversely affected the poor populace of Karachi, mainly because of the closure of business and trade activities that pushed many into severe financial constraints.

To top it all off, profiteers have been capitalising on the situation by inflating the prices of essential and edible items according to their whims and fancies. What’s more, there have been no checks and balances on part of the government which has only made matters worse.

“We received a ration bag from a philanthropy organisation during the first week of the lockdown but since then, it has become very difficult to obtain that. As a result, we were forced to purchase items from a neighbourhood store. I am shocked how prices have been inflated and no one is there to stop the shopkeepers,” said Shuja Abid, a resident of Korangi.

Per sources, since the lockdown was imposed, shopkeepers have increased the price of a packaged flour bag to Rs660 whereas loose flour is priced at Rs47-50 per kilogramme (kg). The price of split green gram (dal moong) has increased from Rs240 to Rs270, the price of split Bengal gram (dal chana) has surged to Rs150, the price of red split lentil (dal masoor) has jumped from Rs150 to Rs155, the cost of a kilogramme of rice has increased from Rs80 to Rs100, sugar is being sold for Rs80 per kg, while the cost of one litre of ghee or oil has surged from Rs170 to Rs250. Similarly, prices of vegetables and fruits have also been increased.

Speaking to The Express Tribune, Shahid Ali, a shopkeeper, said that the prices of edible items were fluctuating daily in the wholesale commodity market.

“It is not up to individual shopkeepers. Wholesalers are the ones making the most of this crisis because philanthropists and welfare organisations are purchasing food items in bulk to prepare ration bags for the poor,” he said. “Moreover, owing to the suspension of public transportation, shops are receiving very limited supplies because of which we are bound to sell the items on exorbitant prices.”

Meanwhile, Sagheer Khan, a milk shop owner, said that since shops selling essential items are allowed to operate for specific hours, his business has been severely affected.

“We have no choice but to increase the prices a bit. Small-scale businesses have a very narrow margin for profits and, on top of that, we have limited supplies these days. The government should understand that,” he said.

Governmental authorities which are responsible to control prices and maintain checks and balances, especially deputy commissioners, assistant commissioners and authorised managers, have failed to monitor the situation, which has given a free hand to shopkeepers to make as much profit as they want.

When approached, All Karachi Tajir Ittehad (AKTI) chairperson Atiq Meer said that the lockdown is a good step for containing the virus, but owing to the price hikes, it is the responsibility of the government to ensure that rations are provided to the poor and the needy.

Per an estimate, in Karachi, the suspension of business activities amid the lockdown has affected four million daily-wage workers associated with various occupations, and their families.

“The government should grant business owners and traders permission to continue with their activities during specific timings. We are ready to cooperate if the government devises a plan for containing the virus,” he said. “We also believe that action should be taken against the profiteers because what they are doing is illegal.”

Meer added that to make the lockdown a success, the government must consult all the stakeholders as the drastic decision to suspend business activities has backfired in many ways - leaving the poor to bear the brunt of it. 

Published in The Express Tribune, April 11^th, 2020.