Dar urges price control during Ramazan

ISLAMABAD: Finance minister Ishaq Dar while expressing concern over sharp increase in the prices of some food items such as onion, tomatoes and pluses has directed ministry of food security and research as well as Utility Stores Corporation to immediately submit a report in this regard so that the matter could be discussed at the ECC level.
He was presiding over a meeting of the national price monitoring committee here Thursday. The chair informed the committee that the government has been successful in keeping inflation at the lowest in FY 15 as compared to last 11 years by implementing appropriate monetary and fiscal policies as well other administrative measures to control the prices and supply situation in the country.
The meeting reviewed the trend of inflationary indicators including the Consumer Price Index (CPI), food, non-food, core Wholesale Price index (WPI) and Sensitive Price Index (SPI). CPI was recorded at 3.2 percent in May 2015 while SPI and WPI were registered at 1.2 percent and -1.8 percent respectively. SPI for the week ending June 18, 2015 recorded an increase of 0.25 percent due to increase in prices of some commodities, however, out of 53 items, prices of 18 items registered increase while the prices of 10 items decreased and those of 25 items remained stable as compared to the previous week.
The meeting was informed that for the last five weeks the sensitive price index, which monitors the sensitive kitchen items, is increasing. The chair observed that the prices of essential kitchen items are lower in the sasta bazaars as compared to the open market. In Islamabad there is difference of Rs8 between the open market and sasta bazaar prices of wheat flour, broken rice is cheaper by Rs.7.50 in sasta bazaar, chicken by Rs36, eggs by Rs6, vegetable ghee (open) by Rs6, bananas byRs62.50, masoor by Rs14.38, moong by Rs15.63, mash by Rs16.25, potatoes by Rs14.00, onions by Rs19.30, tomatoes by Rs17.88, sugar by Rs0.50, red chillies (powdered) by Rs27.50 and garlic by Rs81.50 etc. Similarly the prices in sasta bazaars in Punjab, Sindh and KPK were also found much lower than the open market prices.
The committee noted that the federal government is providing subsidy for the relief package during the Holy month of Ramadan 2015. The essential consumer items will be provided on reduced rates through the Utility Stores all over the country.
The Minister directed the Competition Commission of Pakistan to identify gaps in the existing legal/policy framework relating the price and supply of essential commodities and keep a close watch on the undertakings in the informal food sector who are manipulating supply and prices of the commodities and submit concrete recommendations in this regard.
The meeting also noted that in Punjab 316 Ramzan Bazaars have been established for provision of essential items at discounted rates while 1525 price control magistrates have been deputed and 2000 Iftar Dasterkhwans have been set up. The
government of the Punjab is providing subsidy worth Rs3.5 billion on provision of atta. Through this intervention 14 million bags of atta will be provided on subsidised rates. Pakistan Sugar Mills Association (PSMA) has provided 15,000 tons of sugar at Rs8/kg less than the open market price. Ghee will be provided Rs10/kg/litre cheaper than the open market rate. Pakistan Poultry Association (PPA) will arrange cheaper supply of poultry products.
The government of Sindh has also taken a number of measures to ensure smooth supply of essential items of daily use. Manufactures of edible oil and ghee have agreed to provide cheaper products at bachat bazaars. Weekly bazaars will ensure the availability all essential commodities at discounted rates.
The meeting was apprised that Food Directorate KPK Peshawar has directed all deputy commissioners to oversee the availability of essential commodities and ensure stability of prices. Balochistan government has also constituted district price control/ monitoring committees to review and notify prices of essential commodities and maintain supply in consultation with all stakeholders and has also appointed price control magistrates is all districts to fix the prices of daily use items in consultation with all stakeholders.
The meeting was informed that ICT administration has also taken a number of initiatives to provide relief to the general public during Ramzan. Sasta bazaars have also been established at Barakau, Koral and Rawat while 35 fair price shops have been establishment in the urban and rural areas of Islamabad.
The meeting was attended, among others, by the representatives from Punjab, Sindh, Khyber-Pakhthunkhwa, Balochistan, Islamabad Capital Territory and ministries of industries, law and justice, commerce, food & security, interior, inter provincial coordination, Cabinet Division, Pakistan Bureau of Statistics, Federal Board of Revenue and Utility Stores Corporation.