As prices of commodities go up in the open market, the Economic Coordination Committee (ECC) of the cabinet, which is scheduled to meet on Wednesday, is likely to approve an increase in prices of essential commodities being sold at subsidised rates at outlets of Utility Stores Corporation (USC).
The Ministry of Industries and Production has proposed that the economic decision-making body should approve a hike of up to Rs60 per kg in prices of wheat flour, ghee and sugar following rise in prices of these edible commodities in the open market.
According to a summary prepared by the ministry, the federal cabinet, in its meeting held in February 2020, directed USC to keep unchanged prices of five essential commodities by June 30, 2020. In line with the directive, wheat flour price should be kept at Rs800 per 20 kg, sugar at Rs68 per kg, edible oil at Rs175 per kg, rice Rs15-20 per kg less than the market price and pulses Rs15-20 per kg less than the market rate.
The Ministry of Industries said the USC management had insisted that revision in prices of essential commodities was necessary due to prevailing market conditions and in order to maintain a reasonable difference in comparison with prices in the open market. Therefore, USC proposed a revision in subsidised prices of essential commodities. The ministry proposed a hike of Rs60 in the price of flour from Rs800 to Rs860 per 20kg bag. Prices in the open market were in the range of Rs860 to Rs1,100 per bag. The price gap was Rs60 to Rs300 per bag.
The proposed price would be in accordance with the price control applied in collaboration with provincial governments, it said. The ministry proposed an increase of Rs9 in the price of sugar from Rs68 to Rs77 per kg. Prices in the open market stood at Rs90-100 per kg. The price gap was in the range of Rs22-32 per kg.
The ministry also called for an increase of Rs10 in the price of ghee from Rs170 to Rs180 per kg, subject to a hike in palm oil prices in the international market.
Market prices of ghee were in the range of Rs221 to Rs225 per kg. The price gap was Rs51-55 per kg.
The price of rice was Rs15-20 per kg less than the market rate, as decided in the cabinet. Similarly, according to the Ministry of Industries, pulses price was Rs15-20 per kg less than the market rate, as agreed in the cabinet.
Published in The Express Tribune, October 7th, 2020.
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