This Eid, shop at Bakra Mandi, where prices jump over the moon

The spirit of the festival is kept alive amid market politics and Rs5,000 for car stickers.

KARACHI:

A raging bull of the SB Dairy and Cattle ran off from his rather homely pavilion, stomped back and forth through the muddy alley a few times and finally barged into the exquisitely decorated tent adjacent his.

Within a minute, a dozen boys and men gathered and followed the bull inside while an equal number of unsuspecting people pushed their way outside, alarmed by the bull’s ungainly intrusion.

While the things at the cattle market at Super Highway were slow up till Saturday afternoon, the boys found their source of daily entertainment in the rampaging bull.

By Saturday, about 60,000 animals trickled into the market from districts across Sindh and southern Punjab ready for the sacrifice on Eidul Azha. The administration, however, was positive that the figure would hit 400,000 before Eid.

A random survey of the cattle market on Saturday by The Express Tribune revealed the traders’ desperation to milk the buyers for all they are worth. They claimed they have been forced to do this ever since big investors and business houses entered the trade since three or four years ago and monopolised the prices and brought about the trend of exhibitionism.

Many big investors see the build-up to Eidul Azha as an opportunity to double their money. One way to this is buying good cattle breed from small farmers before they get to the cattle market. This allows them to control and define the dynamics of the market.

“The generally decided rate for each 40 kilogramme (1 maund) of an average cow is Rs20,000 - not less than that,” explained Muhammad Saleem, a munshi (secretary) clad in traditional dhoti and kurta at the Haji Pir Bakhsh Cattle Farm’s tent. “Rs100,000 will simply be added to that price if the animal is very beautiful.” What they call an ‘average cow’ in the market usually weighs between 100 and 120 kilogrammes, bringing the minimum price to Rs50,000. “If a buyer lacks bargaining skills, he would buy it for no less than Rs70,000,” Saleem observed.

While he does not approve of the new trend of profiteering before the religious festival, Saleem feels that it is unavoidable. The surge in prices is also used to pay off the charges for the spaces and utilities provided to them. “Of the severe hindrances for those who are new to the business, the main concern now is that of recovering the amount that we invested - profit comes only after then,” said 36-year-old Moeid Sultan, an aspiring entrepreneur and chartered accountant who has been working as the finance general manager at the Institute of Business Administration since 2002.

After struggling for three years and investing over four million rupees, Sultan managed to set up decent stall in the name of his eight-year-old son, Sheikh Mahd. Now, he owes half the amount invested in loans. At the humble Sheikh Mahd Cattle Farm, there are 28 cattle all to be sold for a nominal profit as compared to the res of the market.

Sultan felt that the administration has distributed most of its facilities among people from the private sector or with an influential political background. “If it has been administered wholly by the cantonment board, the arrangements would have been much more disciplined and the related costs would be much lesser,” he said. “Accordingly, the prices would have been much cheaper.”

The Express Tribune caught up with the cattle market administrator, Shahab Ikram at his office. Wearing a grimy white shalwar qameez, the hard-headed administrator explained that the Malir Cantonment Board has given him the authority to manage the market’s affairs. The market spreads over more than 800 acres.

“With the exception of one year in the middle, my company, Faisal Brothers, has been winning the bid for this contract for the last 12 years,” he boasted. Other than that, he refused to speak about the specifics of this elusive contract or the percentage of profits which he receives - a “business secret”.

Setting up shop

Ikram said that the cantonment board acquired the land for market from the housing schemes on rent in the same way every year. This year, the market has been divided into 21 units of which four are ‘exhibition blocks’ and are favourites with the big names in cattle farming such as Jamil Memon, Amir Dilpazeer and Haji Pir Bakhsh. For them, a single 30 by 120 foot area costs Rs85,000 - a Rs15,000 jump from last year’s price.

Block numbers 5 and 6 are for junior VIPs and the same amount of space in this section cost Rs60,000. The rest of the market is a haphazard arrangement of sections for lower traders that are available at relatively lower prices.

Tents and shelter are a separate cost, depending on your business skills, a tent can cost you a minimum of Rs30,000. Private tent companies are hired by the administration on contract for this.

In fact, the sellers are charged for everything, right down to entrance fees. The cattle owners are charged Rs800 as entry fee to the market for each large animal that they bring in and Rs500 for small animals, such as goats and sheep. A further Rs800 are charged for each truck that enters the market loaded with these animals.

The receipts that the traders receive for these transactions have to be stamped and kept safe because when the cantonment water truck comes around, they have to produce the receipts in order to receive a free water supply. However, traders complain there is not enough water, and private water tanker services are hired by the administration - an additional expense of Rs2,000 for a 100 gallons.

The market does not have a direct electricity supply from the Karachi Electric Supply Company and uses generators. This utility’s sub-contractor charges Rs50 a day for an energy-saving bulb. Those who prefer to use personal generators, must buy these bulbs at the rate of Rs12,000 to Rs15,000 for 100 bulbs.

A little distance from the market, the 20,000 vehicle-capacity parking area is also contracted out by the cantonment board at Rs6 million and is currently controlled by ‘Rana Noor and Brothers’.

Naturally, Rs30 is charged as a parking fee for four-wheelers, while Rs10 for motorcyclists. Car-pass stickers are sold at Rs5,000 to Rs2,000.  “It is up to the contractor’s discretion to charge whatever they feel like for a service, the final amount paid is up to the bargaining power of the purchaser,” said Ikram “This is how these traders deal with their customers, too. Better, they shouldn’t be making fuss about it.”

Published in The Express Tribune, October 24^th, 2011.