Carrot to replace stick in price control

Enforcement failure causes pricing review

LAHORE:

After the government's failure to control the prices of vegetables and fruits despite all efforts, the agriculture department, market committee and district administration of Lahore are contemplating a revision of the pricing formula.

 While the move appears aimed at covering up the failure of the authorities to stop the sale of farm produce at high prices, officials cited objections of the shopkeepers to the rates set by the market committee.

 They pointed out that the citizens were also not getting the goods at the official rates.

 According to sources, it has been decided that the shopkeepers would be allowed to sell the produce at up to Rs20 higher prices than those fixed by the committee.

 As a result, the prices of vegetables and fruits will increase along with the profit.

 According to market sources, the move will benefit the shopkeepers without bringing any relief for the consumers.

 A committee has also reportedly recommended that the number of categories with respect to quality of fruits and vegetables be reduced to two from three.

 The third category will be abolished.

 However, many shopkeepers insist that the commodities are not available to them at the prices fixed by the committee.

 The vegetable and fruit sellers alleged that government officers set the prices without a survey.

 However, Lahore Market Committee Secretary Shehzad Cheema told The Express Tribune that the food items were available in large quantities in the markets managed by the government at the fixed prices.

 He said the shopkeepers in those markets were also earning profit.

 He alleged that the shopkeepers wanted to earn more profit.

 He said a committee of Lahore district administration officers had been formed to find a permanent solution to the problem.

 The committee has suggested that if the shopkeepers are allowed to sell vegetables and fruits at Rs15 or Rs20 more than the rate list, they would have no objection to the official rates and they would be able to earn legitimate profit.

 The citizens would also get the items at relatively reasonable prices.

 Cheema said in reply to a question that it was the responsibility of the district administration to curb profiteering.

 When contacted, Deputy Commissioner Muhammad Ali said the dominance of the vendors could be ended by allowing the sale of fruits and vegetables at a profit slightly higher than the official rate list.

 After the decision of the committee formed in this regard, if shopkeeper charges high prices, he will be arrested.

 The decision will be taken in a meeting soon about determining the prices of vegetables and fruits.

 The official said powers were being given to price control magistrates to prevent sale of commodities at high prices.

 Instructions have been issued to all officers concerned to continue their action to prevent profiteering.

 He said fines were being imposed, cases registered and arrests made daily to curb profiteering.

 The provincial government is employing digital monitoring mechanism and toll free helpline devised by the Punjab Information Technology Board (PITB) for recording complaints against profiteering and hoarding in trade of essential commodities.

 An online price control and monitoring system has been developed and deployed since October 2013.

 District magistrates use the system in their daily price checks.

 The online system has also provided for citizens awareness and feedback regarding commodities prices.

 The PITB is now developing a multi-level pull base SMS system for gathering feedback.

 The GIS-based system provides for predictive modeling for prices.