Commodity price hikes irk consumers
PHOTO: FILE
Like routine, the annual Ramazan induced inflation is troubling the residents of Lahore once again and those who stocked up on groceries to stay away from high priced commodities are now complaining about their quality.
Residents of one of the country’s most populous cities are wary of the Ramazan bazaars that have propped up in different parts of the provincial capital which under the guise of being cheap have been termed as exploitation mechanisms employed by trades to sell substandard goods.
On the other hand, some residents allege that dealers and middlemen stock sugar, ghee, cooking oil, and other essential commodities creating an artificial shortfall to raise prices. General Secretary of Badami Bagh, regarded as the largest fruit and vegetable market in Lahore, Nazir Ahmad, whilst denying allegations of profiteering, said that it was just simple economics - supply and demand determines the price.
Talking to The Express Tribune, Ahmad, was of the view that the prices are only high during the first 10 days of the holy month as markets witness an influx of customers. “The other reason for high prices is that some vegetables and fruits come into Punjab later than other provinces like Sindh, so traders charge higher prices,” said Ahmad matter-of-factly.
While Ahmad did not give any reassurances regarding prices, Tariq Javed, President of Lahore’s Tollinton Market, which is known as the largest meat market in the city, was hopeful that they would be able to meet rising demand and keep prices in check.
“Like every Ramazan, we have tried to keep prices low. However, as soon as Eid nears we will see a drastic upsurge in demand and therefore prices will rise as well,” Javed predicted. Toeing Javed’s line of ample production, central leader of the Milk Sellers Association Lahore, Chaudhary Sohail, reassured that neither would there be a shortfall nor would the prices rise. Sohail said that citizens could breathe easy knowing that they would not be cheated as far as prices of dairy are concerned. While traders have made assurances, the Pakistan Bureau of Statistics (PBS) reported last week that the Consumer Price Index (CPI) rose to 12.7% in March.
Resultantly, the spending power saw a decline in Ramazan but Dr Qais Aslam, an economist based in Lahore, believes that commodity prices have shot up because the government’s price controlling mechanisms were weak. “Besides profiteering,” Dr Aslam said, “the lack of check and balance on traders by local authorities leads to traders demanding exorbitant prices which burden the average consumer.”
Dr Aslam while rubbishing claims of simple economics of demand and supply, retorted, “why do prices of dates and fried goods remain the same despite their demand increasing ten-fold?” Answering his question, the economist said, “shopkeepers raise prices to make quick profits and price control committees watch in silence. It is not an issue of supply and demand but rather cheating the consumer.”
Published in The Express Tribune, April 5th, 2022.