Floods may negatively affect vegetable prices

Meeting noted prices of daily-use items have declined after Ramazan.

ISLAMABAD:


The National Price Monitoring Committee (NPMC) has warned that floods in Sindh may negatively affect prices of red chilli, tomato and onion in coming weeks, once supply from the upcountry starts catering to the needs of affected districts of the province.


The NPMC, headed by Finance Secretary Dr Waqar Masood, observed that the likely impact of Sindh floods cannot be ignored as some sensitive commodities such as red chilli, tomato and onion are grown in good quantities in Sindh and their impact on prices may come in coming weeks.


The committee monitored the price situation arising out of the damages caused by recent floods and rains in Sindh and discussed the possibility of importing daily-use items from neighbouring countries. It was informed by a representative of the Khyber-Pakhtunkhwa government that there was a major impact on prices in their province which was also endorsed by representatives of Punjab and Balochistan.

The committee also took account of the current stock position of sugar and observed that sufficient stock is available which will last by the end of December. However, in view of damages to the sugar crop in Sindh, it was stressed that a decision be taken to timely import sugar to cater to the strategic reserves and Utility Store Corporation’s requirement.

The meeting noted that with the end of Ramazan and Eid, prices of daily-use items have declined and the Sensitive Price Indicator (SPI) for the week ended on September 18 declined by 0.11 per cent. This decline had been observed since June. International food and fuel prices were also reviewed and it was noted that on year-on-year basis there was an increase in prices of wheat, crude oil, palm oil, sugar, tea, rice and fertiliser in August, but on month-on-month basis there was a decline in prices of commodities, which may bring some relief in domestic prices.

Published in The Express Tribune, September 20th,  2011.
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