Food inflation: no respite

As the year 2024 unfolds, it becomes painfully evident that the specter of food inflation continues to haunt consumers, with little respite in sight. Despite efforts to curb price hikes and enforce official price lists, retailers persist in flouting regulations, leaving many cash-strapped individuals struggling to afford basic necessities amidst inflated power and gas bills.

The situation is exemplified by recent events surrounding the ban on onion and banana exports which, despite initial hopes, failed to translate into relief for end users. Instead, consumers found themselves confronted with exorbitant prices as retailers unabashedly maintained rates well beyond what the average household could bear. From onions priced at Rs260-300 per kilogram to bananas fetching Rs200 per dozen for small sizes and Rs250 for large sizes, the ban did little to temper the soaring demand or rein in profiteering vendors. The onset of Ramazan only served to exacerbate matters, with reports of retailers releasing hoarded stocks of low-quality bananas in a bid to capitalize on heightened demand. The absence of official price lists at many outlets further compounds the issue, leaving consumers at the mercy of unchecked pricing practices. The failure to enforce price controls can also be attributed, in part, to a dearth of regulatory officials tasked with overseeing markets and retailers across the city. In the absence of sufficient manpower, retailers often act with impunity, flouting regulations without fear of repercussions.

Addressing the systemic issues underlying food inflation requires a multi-pronged approach that combines regulatory enforcement with broader structural reforms. Primary to this would be increasing the availability of official price lists through non-digital channels among the masses to ensure accessibility. Furthermore, there is a pressing need for greater transparency and accountability in the supply chain, from producers to retailers, to prevent hoarding and price manipulation.

Published in The Express Tribune, March 15^th, 2024.

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