Prices of essential commodities increase

Two separate qualities of sugar in the market.

KARACHI: Retail prices of most essential commodities, including sugar, fresh milk, ghee and edible oil have increased in the city.

Wholesalers and retailers of groceries have adopted a new tactic to escape the government’s wrath for selling sugar at prices higher than the officially fixed rate at Rs71 per kilogramme.

They are offering two different qualities of sugar with varying prices. The powdered form of sugar is being sold at Rs72 per kg while the sugar in its tiny crystalline form costs Rs95 per kg.

The retailers blamed the wholesalers for this tactful manoeuvre to continue profiteering and deceiving the authorities simultaneously.

Karachi Wholesale Grocers Alliance Chairman Anees Majeed told The Express Tribune that the government had fixed sugar prices at Rs71 per kg but it did not have any indigenous sugar and the sugar brought to the market was imported, which is normally in powdered form. Henceforth, the Rs71 per kg was the price of imported sugar and not of the locally produced commodity.

Wholesale prices of locally produced sugar are Rs80 per kg and those who sell it for Rs95 are extorting money from the common man, he added.

He said that monthly sugar consumption is around 350,000 tons and although the supply of local sugar will increase in 10 days, prices will not decline to less than Rs75 per kg.

However, the provincial government had not indicated that the lower price would be for powdered sugar and prices for crystalline sugar will be much higher.

Milk

Prices of fresh milk have escalated to Rs58 per litre and gone to as high as Rs60 per litre in some areas. However, around 20 per cent of milk retailers display banners highlighting prices at Rs40-45 per litre.

Retailers selling milk at the lower price said that the prices have declined due to the winter because the use of certain milk by-products is greatly reduced in the season. However, the reduction in milk price pertained only to the main milk market in the city since retailers, who under an annual agreement procure a certain fixed amount of fresh milk from dairy farmers, will not follow open market rates.

Ghee and oil

Ghee and edible oil prices have also been hiked twice this month. A wholesale ghee depot owner said that his company’s representatives had received bulk orders for the supply of ghee and edible oil just a day before Eidul Azha. However, the top two ghee manufacturers declined to supply the stock according to the order and said that the supply will only be ensured under increased prices.

Other ghee manufacturers apologised for not fulfilling their commitment but gave 50 per cent of the order at the old rates and the remaining 50 per cent at increased rates. The new prices of ghee and edible oil are Rs150 per kg and Rs155 per kg respectively. Talking to The Express Tribune, City District Government Karachi’s (CDGK’s) enterprises and investment promotion (EIP) group of offices executive district officer, Tahir Durrani, said that his department was only preparing price lists and did not have any price controlling powers because the Sindh government had taken back such powers a year and a half ago.

He said that even the special magisterial powers delegated to the CDGK deputy district officer for revenue had been withdrawn and the CDGK is helpless in initiating any action against profiteers. It is now the provincial government’s responsibility to conduct such actions, he added.

Published in The Express Tribune, November 24^th, 2010.