07-02-2009, 07:21 AM
By Shahid Shah
KARACHI: Prices of groceries including pulses and flour increased by up to 26 per cent on the very first day of the new fiscal year following rise in petroleum product prices. Current hike in petroleum product prices will increase inflation by 22 per cent, analysts say.
The increase in petroleum prices had a quick impact on rates in the local market due to the reciprocal hike in transport fares. Price of sugar rose to Rs43 per kg from Rs42.5, maash lentil jumped by Rs20 to Rs95 per kg from Rs75 on Tuesday. Moong price increased to Rs55 from Rs45.
Similarly, wheat flour price also increased and the price of 80kg bag surged by Rs30 to Rs2,250 from Rs2,220.
Karachi Retail Grocers Association Secretary General Farid Qureshi sees more increase in commodity prices in coming days. “There would be 20 to 22 per cent extra burden on the household budget of each person,” he said.
Besides, prices of wheat flour are likely to increase, as the government is not continuing subsidy on wheat under IMF conditions. It has also allowed export of flour, suji and maida.
The government has procured wheat worth Rs164 billion at a support price of Rs950 per 40kg. Carrying cost including bank interest and other charges takes its price to Rs1,050 per 40kg, which is above market price.
The Pakistan Flour Mills Association has suggested to the government to provide subsidy to the mills so cheap roti could be made available to the consumers. “We suggested to the government to provide subsidy, so we may cut prices of flour and one kg of flour becomes available at Rs25 to the consumers,” Syed Johar Ali Qandhari, Chairman PFMA, told The News. He said the Punjab government had spent Rs22 billion as subsidy to provide roti at Rs2.
Last year, the government spent Rs82 billion on wheat import. Now the government is spending Rs30-40 billion in subsidy on procurement of wheat in the shape of support price.
“The government gave us wheat at Rs950 per 40kg for a few days. There is no subsidy now,” Qandhari said.
Sindh government has storage capacity of 1.2 million tonnes of wheat. Stored in warehouses, the stocks are vulnerable to rain damage.
Qandhari said they have proposed to Sindh government as well to give Rs5 billion subsidy and provide wheat at Rs2,000 per 100kg.
Commenting over increase of petroleum prices he said if transport fares increase there would be an impact on flour prices as well.
This year’s wheat production is likely to remain 23.5 million tonnes. The government has procured nearly 9 million tonnes.
Of which, Sindh government procured nearly 1.2 million tonnes, Punjab 7 million tonnes, NWFP 0.60 million tonnes, Baluchistan has stocks of 0.4 million tonnes, while Passco procured 2 million tonnes.
Despite of having bumper crops of wheat and rice, Pakistan remains under threat of food deficiency. According to a report, Pakistan’s several urban and rural districts are food insecure.
http://www.thenews.com.pk/daily_detail.asp?id=186095
KARACHI: Prices of groceries including pulses and flour increased by up to 26 per cent on the very first day of the new fiscal year following rise in petroleum product prices. Current hike in petroleum product prices will increase inflation by 22 per cent, analysts say.
The increase in petroleum prices had a quick impact on rates in the local market due to the reciprocal hike in transport fares. Price of sugar rose to Rs43 per kg from Rs42.5, maash lentil jumped by Rs20 to Rs95 per kg from Rs75 on Tuesday. Moong price increased to Rs55 from Rs45.
Similarly, wheat flour price also increased and the price of 80kg bag surged by Rs30 to Rs2,250 from Rs2,220.
Karachi Retail Grocers Association Secretary General Farid Qureshi sees more increase in commodity prices in coming days. “There would be 20 to 22 per cent extra burden on the household budget of each person,” he said.
Besides, prices of wheat flour are likely to increase, as the government is not continuing subsidy on wheat under IMF conditions. It has also allowed export of flour, suji and maida.
The government has procured wheat worth Rs164 billion at a support price of Rs950 per 40kg. Carrying cost including bank interest and other charges takes its price to Rs1,050 per 40kg, which is above market price.
The Pakistan Flour Mills Association has suggested to the government to provide subsidy to the mills so cheap roti could be made available to the consumers. “We suggested to the government to provide subsidy, so we may cut prices of flour and one kg of flour becomes available at Rs25 to the consumers,” Syed Johar Ali Qandhari, Chairman PFMA, told The News. He said the Punjab government had spent Rs22 billion as subsidy to provide roti at Rs2.
Last year, the government spent Rs82 billion on wheat import. Now the government is spending Rs30-40 billion in subsidy on procurement of wheat in the shape of support price.
“The government gave us wheat at Rs950 per 40kg for a few days. There is no subsidy now,” Qandhari said.
Sindh government has storage capacity of 1.2 million tonnes of wheat. Stored in warehouses, the stocks are vulnerable to rain damage.
Qandhari said they have proposed to Sindh government as well to give Rs5 billion subsidy and provide wheat at Rs2,000 per 100kg.
Commenting over increase of petroleum prices he said if transport fares increase there would be an impact on flour prices as well.
This year’s wheat production is likely to remain 23.5 million tonnes. The government has procured nearly 9 million tonnes.
Of which, Sindh government procured nearly 1.2 million tonnes, Punjab 7 million tonnes, NWFP 0.60 million tonnes, Baluchistan has stocks of 0.4 million tonnes, while Passco procured 2 million tonnes.
Despite of having bumper crops of wheat and rice, Pakistan remains under threat of food deficiency. According to a report, Pakistan’s several urban and rural districts are food insecure.
http://www.thenews.com.pk/daily_detail.asp?id=186095