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Consumers to face new wave of price hike
By Aamir Shafaat Khan
Friday, 02 Jul, 2010
Poor people enjoy subsidized food in Rawalpindi, Pakistan on Wednesday, June 30, 2010. As Pakistan's economy continues to decline, surging prices on daily commodities are dragging more people into poverty, fueling political tensions and forcing some to give up eating items such as meat and fruit. -
Spinners blamed for surge in cotton prices
KARACH: While the consumers have been paying high prices for essential goods for the last one year, they will subject to another one per cent price hike after increase in GST to 17 per cent from 16 per cent from July 1, 2010.
While many companies have not yet issued new price list of packed kitchen items on July 1, but a possible price surge is hovering on the end-users.
A leading manufacturer of dairy product, which had already played havoc with prices of tetra and powdered milk, has raised the rates of mineral water from July 1. The new rate of 1.5 litre bottle is now Rs32 as compared to Rs30.
However, there is some relief for consumers in wheat flour varieties and rice, which remained unchanged in the last one year.
Producers of dairy products including tetra and powdered milk and fresh milk producers had given severe shocks to the consumers before and after the budget by frequently increasing the rates. However, the government never bothered to take these powerful market players to the task.
As the price checking campaign by the city government remained unproductive, meat merchants fully utilised the situation by pushing up the rate under the pretext of meat exports and smuggling of live animals.
Meat exports in July-May 2009-10 swelled to 33,632 tons ($89.6 million) from 23,851 tons ($64 million) in the same period of last fiscal year.
Pulses prices have started going up ahead of the holy month but the city government officials are busy in issuing fortnightly price list with the help of few traders, which consists of unrealistic rates.
This official price list shows marked disparity in the rates prevailing in the market. Retailers put on display the list but charge higher prevailing market price from the consumers. The government is hardly making any counter check to punish the violators of the official price list.
Traders have imported higher pulses during July-May 2009-10 to 407,464 tons ($236.5 million) as compared to 333,825 tons ($206 million) in the same period last fiscal.
Wholesalers say that devaluation of the rupee against the dollar had made imports costlier, besides increased buying of pulses by India, which pushed up the rates of pulses in world markets.
As the month of Ramazan is starting from the middle of August, the government is still not taking stock of the situation how to control food inflation.
Consumers are further shocked over fresh increase in gas and power tariff.
According to domestic commodity price chart prepared by Federal Bureau of Statistics (FBS), electricity charges (1-100 units) has soared to Rs3.9 per unit on June 24, as compared to Rs3.3 per unit in the same period of last month.
Gas charges up to 3.3719 mmbtu, which was Rs100 per mmbtu in June 2009, is now 115.4 mmbtu on June 24, 2010. Furnace oil rate has risen to Rs44,642 per ton in June 2010 from Rs39,667 in June 2009.
However, the FBS data shows a sharp difference in prices of commodities as compared to current price.
For example, the data shows the current beef and mutton price at Rs194 and Rs369 per kg, while the actual rate in the market is Rs240-250 and Rs440 per kg, respectively. Similarly, fresh milk rate on June 24, 2010 is quoted at Rs46 per liter while it is actually being sold at Rs56 per litre.
By Aamir Shafaat Khan
Friday, 02 Jul, 2010
Poor people enjoy subsidized food in Rawalpindi, Pakistan on Wednesday, June 30, 2010. As Pakistan's economy continues to decline, surging prices on daily commodities are dragging more people into poverty, fueling political tensions and forcing some to give up eating items such as meat and fruit. -
Spinners blamed for surge in cotton prices
KARACH: While the consumers have been paying high prices for essential goods for the last one year, they will subject to another one per cent price hike after increase in GST to 17 per cent from 16 per cent from July 1, 2010.
While many companies have not yet issued new price list of packed kitchen items on July 1, but a possible price surge is hovering on the end-users.
A leading manufacturer of dairy product, which had already played havoc with prices of tetra and powdered milk, has raised the rates of mineral water from July 1. The new rate of 1.5 litre bottle is now Rs32 as compared to Rs30.
However, there is some relief for consumers in wheat flour varieties and rice, which remained unchanged in the last one year.
Producers of dairy products including tetra and powdered milk and fresh milk producers had given severe shocks to the consumers before and after the budget by frequently increasing the rates. However, the government never bothered to take these powerful market players to the task.
As the price checking campaign by the city government remained unproductive, meat merchants fully utilised the situation by pushing up the rate under the pretext of meat exports and smuggling of live animals.
Meat exports in July-May 2009-10 swelled to 33,632 tons ($89.6 million) from 23,851 tons ($64 million) in the same period of last fiscal year.
Pulses prices have started going up ahead of the holy month but the city government officials are busy in issuing fortnightly price list with the help of few traders, which consists of unrealistic rates.
This official price list shows marked disparity in the rates prevailing in the market. Retailers put on display the list but charge higher prevailing market price from the consumers. The government is hardly making any counter check to punish the violators of the official price list.
Traders have imported higher pulses during July-May 2009-10 to 407,464 tons ($236.5 million) as compared to 333,825 tons ($206 million) in the same period last fiscal.
Wholesalers say that devaluation of the rupee against the dollar had made imports costlier, besides increased buying of pulses by India, which pushed up the rates of pulses in world markets.
As the month of Ramazan is starting from the middle of August, the government is still not taking stock of the situation how to control food inflation.
Consumers are further shocked over fresh increase in gas and power tariff.
According to domestic commodity price chart prepared by Federal Bureau of Statistics (FBS), electricity charges (1-100 units) has soared to Rs3.9 per unit on June 24, as compared to Rs3.3 per unit in the same period of last month.
Gas charges up to 3.3719 mmbtu, which was Rs100 per mmbtu in June 2009, is now 115.4 mmbtu on June 24, 2010. Furnace oil rate has risen to Rs44,642 per ton in June 2010 from Rs39,667 in June 2009.
However, the FBS data shows a sharp difference in prices of commodities as compared to current price.
For example, the data shows the current beef and mutton price at Rs194 and Rs369 per kg, while the actual rate in the market is Rs240-250 and Rs440 per kg, respectively. Similarly, fresh milk rate on June 24, 2010 is quoted at Rs46 per liter while it is actually being sold at Rs56 per litre.
