The Karachi Wholesale Grocers Association has declared the closure of all commodity markets on Monday in response to the recent raids, fines, and the sealing of shops and warehouses by the administration.
Abdul Rauf Ibrahim, Chairman of the Association, made the announcement at a press conference at Jodia Bazaar on Friday, where he was accompanied by other office bearers of the Association. They highlighted that the administration had sealed 125 wholesale shops and warehouses and imposed heavy fines between Thursday and Friday night.
They gave the Karachi administration an ultimatum to unseal the shops and withdraw the fines by Monday, otherwise the wholesale markets in other areas, including Jodia Bazaar, will also shut down.
Ibrahim clarified that they are not opposed to crackdowns on hoarding but are willing to cooperate with the administration. However, they believe the administration is targeting the wrong entities. He suggested that the administration should focus on addressing hoarding at sugar mills and their undisclosed warehouses.
Ibrahim also pointed out that the current definition of hoarding is not clearly defined in the law, but a wholesaler is authorised to maintain a stock of up to 100 tons of commodities. The absence of an inventory and pricing system due to a lack of management further complicates matters.
The ex-mill price of sugar had dropped to Rs140 per kg on Thursday but increased to Rs147 per kg following Friday's crackdown. Ibrahim urged the administration to provide them with fixed wholesale prices for sugar, flour, and other goods.
With a proper organised system, wholesalers can adhere to these fixed prices, and the administration can hold them accountable accordingly. He also stressed the need for a transparent challan procedure.
Regarding the recent fines imposed on traders for keeping only two sacks of sugar, Ibrahim termed these actions "unjust". He called for relevant institutions to investigate those responsible for exploiting consumers and amassing billions of rupees through sugar price manipulation, an issue amounting to a significant scam of Rs165 billion.
Published in The Express Tribune, September 16th, 2023.
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