Profiteers have 3 days to cut potato prices, warns government
If rates do not come down, duty-free import will be allowed.
The country has a surplus of about 1.1 million tons of potato and prices are being artificially taken to higher levels by the hoarders, speculators and middlemen. PHOTO: FILE
ISLAMABAD:
As potato prices shot up to unrealistically higher levels in wholesale and retail markets, the federal government on Monday gave a three-day deadline to profiteers to cut prices by half or else it would allow duty-free import of the commodity.
The government issued the warning after reviewing the production and supply situation here in a meeting, attended by federal and provincial authorities and chaired by Finance Minister Ishaq Dar.
The government has decided that if prices of potato are not brought to normal levels within a span of three days, all taxes and levies on the import of the commodity will be removed to push prices below Rs30 per kg, according to an official announcement.
In government-controlled markets, potato is sold at Rs60 per kg while in retail markets prices vary from Rs65 to Rs70 per kg, according to market players.
Dar is said to have told the departments concerned that profiteers will not be allowed to manipulate the higher margins by holding back supplies.
Big cold storages, mainly in Punjab, were manipulating the market by controlling supplies, said officials. Dar also asked the Federal Board of Revenue to analyse export data in order to determine whether exports had jumped suddenly.
The meeting was informed that the manipulators were keeping potato prices above Rs50 per kg in the local market.
This was the second meeting held in the last three days to discuss prices of agricultural products.
In a presentation, officials briefed the finance minister about the production, supply, consumption and storage chain of potato.
According to them, the country has a surplus of about 1.1 million tons of potato and prices are being artificially taken to higher levels by the hoarders, speculators and middlemen. In a neighbouring country, potato was being sold at a much lower price, they pointed out.
While the government insists that supply is more than the demand, production has stood below target this year.
The finance minister said the government would take all necessary steps to keep prices of essential commodities at appropriate levels, adding a speedy mechanism would be devised to bring prices down.
The meeting was attended by Federal Minister of National Food Security and Research Sikandar Hayat Khan Bosan, Punjab Minister of Agriculture Dr Farrukh Javed, Finance Secretary Dr Waqar Masood, National Food Security and Research Secretary Seerat Asghar Jaura and Pakistan Agricultural Research Council Chairman Dr Iftikhar Ahmad.
After the 18th Amendment to the Constitution, agriculture is a provincial subject. However, the federal government takes decisions on the import and export of commodities.
Published in The Express Tribune, April 22nd, 2014.
As potato prices shot up to unrealistically higher levels in wholesale and retail markets, the federal government on Monday gave a three-day deadline to profiteers to cut prices by half or else it would allow duty-free import of the commodity.
The government issued the warning after reviewing the production and supply situation here in a meeting, attended by federal and provincial authorities and chaired by Finance Minister Ishaq Dar.
The government has decided that if prices of potato are not brought to normal levels within a span of three days, all taxes and levies on the import of the commodity will be removed to push prices below Rs30 per kg, according to an official announcement.
In government-controlled markets, potato is sold at Rs60 per kg while in retail markets prices vary from Rs65 to Rs70 per kg, according to market players.
Dar is said to have told the departments concerned that profiteers will not be allowed to manipulate the higher margins by holding back supplies.
Big cold storages, mainly in Punjab, were manipulating the market by controlling supplies, said officials. Dar also asked the Federal Board of Revenue to analyse export data in order to determine whether exports had jumped suddenly.
The meeting was informed that the manipulators were keeping potato prices above Rs50 per kg in the local market.
This was the second meeting held in the last three days to discuss prices of agricultural products.
In a presentation, officials briefed the finance minister about the production, supply, consumption and storage chain of potato.
According to them, the country has a surplus of about 1.1 million tons of potato and prices are being artificially taken to higher levels by the hoarders, speculators and middlemen. In a neighbouring country, potato was being sold at a much lower price, they pointed out.
While the government insists that supply is more than the demand, production has stood below target this year.
The finance minister said the government would take all necessary steps to keep prices of essential commodities at appropriate levels, adding a speedy mechanism would be devised to bring prices down.
The meeting was attended by Federal Minister of National Food Security and Research Sikandar Hayat Khan Bosan, Punjab Minister of Agriculture Dr Farrukh Javed, Finance Secretary Dr Waqar Masood, National Food Security and Research Secretary Seerat Asghar Jaura and Pakistan Agricultural Research Council Chairman Dr Iftikhar Ahmad.
After the 18th Amendment to the Constitution, agriculture is a provincial subject. However, the federal government takes decisions on the import and export of commodities.
Published in The Express Tribune, April 22nd, 2014.