Govt, vendors spar over pricing mechanism

Traders demand system overhaul; warn of shutter down strike


Qaiser Shirazi July 10, 2024
Govt, vendors spar over pricing mechanism

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RAWALPINDI:

Various vendor organisations in Rawalpindi have criticised the district administration's method of setting official prices for essential commodities, describing it as outdated and disconnected from current market realities.

They have called for an immediate overhaul of the system.

Union leaders highlighted that both the chief minister of Punjab and the provincial minister of food have recognised the obsolescence of the pricing system and have urged its immediate revision. They warned that if the system is not updated, they would initiate an indefinite shutdown of all food and essential item shops across Punjab and go on strike. The leaders condemned the government's strategy of instructing magistrates to impose hefty fines, sometimes reaching up to Rs100,000, instead of addressing the core issue.

Grocery Merchants Association Central President Saleem Parvez Butt expressed strong disapproval of the bureaucracy's actions, stating, "The bureaucracy is attempting to pit the public against the government. We demand that assistant commissioners and government officers spend three days at every grocery, vegetable, and fruit shop to understand the entire process from wholesale market purchases to store sales.

They should set prices by considering transportation costs, shopkeeper profits, and shopping bag expenses, along with the wholesale price. We have no objections to this approach. It's high time to abolish the outdated 70-year-old policy of arbitrarily fixing prices from the comfort of air-conditioned rooms. No shopkeeper can afford to buy expensive vegetables, fruits, pulses, rice, and flour only to sell them at a loss. Even Food Minister Bilal Yasin admitted the system's flaws and promised reforms, but has remained silent on the matter."

Butt provided an example, noting that the wholesale price of split chickpeas (Chana Dal) in the open market is Rs350 per kg, while the deputy commissioner has instructed vendors to sell it at Rs245 per kg, a price he deemed unrealistic.

He added that if Chana Dal was supplied at Rs230 per kg, they would be willing to sell it at Rs245 per kg.

Shafiq Qureshi, President of the Naan Bai Association, warned that the price of flour had surged by Rs1,000 in just five days, with no end in sight. "At this rate, it's impossible to sell bread (roti) for Rs16," he said.

"Next week, we'll be forced to sell red bread for Rs25, white Khamiri roti for Rs 30, and Naan for Rs35."

Chaudhary Khawar Gujjar, Vice President of the Gawala Union, attributed the rising costs to new taxes, which have driven the price of buffalo to Rs0.9 million. "The cost of fodder, husk, and straw has skyrocketed by 500 per cent," he lamented. "This has forced us to increase the price of milk and dairy products, with packet milk now costing Rs 50 more per kg."

 

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