As the holy month of Ramazan started, many Pakistanis stocked up essential commodities, vegetables, fruits
As the holy month of Ramazan started, many Pakistanis stocked up essential commodities, vegetables, fruits, and sweets so they can prepare evening meals for their families, who fast from sunrise to sunset. Prices usually shoot up in the run-up to Ramazan and this year the increases come as no surprise to anyone.
With many food items imported, Ramazan shoppers are feeling the price increases despite ample supply of such items in the country. "We have imported (and smuggled) over 25,000 tons of dates from Iran and Iraq in the last two months," estimated Aziz Bhai, a trader at Khajoor Bazaar, adjacent to Lee Market. "The sale of dates surges by 1,000-time during Ramazan as compared to other months."
The imports were made to ensure uninterrupted supply to consumers during the fasting month. However, price of various quality dates has surged significantly – especially at retail outlets. The half-kg packet of dates from Iran is priced at Rs150 in various retail markets in Karachi. The similar packet was available at Rs120-130 a couple of weeks ago.
"We are selling the packaged dates from Iran at Rs150/kg at the wholesale market," Aziz said, adding price of other dates in the wholesale market ranges between Rs100 to Rs140/kg. "Ninety percent dates being sold are imported (or smuggled), as this is off-season for dates in the country.”
Local crop of dates is likely to start arriving into market from July 20, 2015.
The consumption of edible oil and ghee also increased in Ramazan, as many people like to eat fried foods at Iftar.
Pakistan Bureau of Statistics reported 211,668 tons of palm oil imported in the month of May, which was 22 percent higher than April 2015, and 37 percent higher than May 2014. The import of soybean oil touched 7,136 tons in May 2015, which was almost nine-fold higher than April 2015, and 3.5-fold higher than May 2014.
Faisal Iqbal, regional manager of Pakistan and Central Asian Republics at Malaysian Palm Oil Council, said traders made higher import of edible oil in the previous two months, April and May, to cater the expected increased demand during Ramazan.
"Traders have imported 170,000 tons in April 2015 and 274,000 tons in May 2015 as compared to, an average of, 135,000 to 140,000 tons during January-March 2015," Iqbal said. "About 90 percent cooking oil sold in Pakistan in all seasons is imported from Malaysia and Indonesia."
Prices of many branded cooking oils, however, were found stable, ranging from Rs136 to Rs170 at a wholesale market. But retailers are reportedly charging Rs2-3/kg higher on branded oil.
The price of sugar has surged to Rs62-64/kg in the retail market from Rs55/kg a few weeks back. The increase in price has been there despite that the country has produced surplus sugar this season. Besides, traders also failed to export a significant volume of the surplus due to the prevailing low price of the commodity in the overseas markets.
The average quality of famous Sindhri mango was priced at Rs100 to Rs120/kg at the Saddar fruits and vegetables market in Karachi on Friday. The similar quality fruit was available at Rs70-80/kg a few days ago in the same market. This was learnt during multiple visits to the market.
"The spike in price of mango is seen due to the arrival of better quality mangoes in the markets," said Haji Shahjahan, president of Karachi's wholesale market of vegetables and fruits at Super Highway.
Prices of different quality-grades of banana have also surged significantly by 40-50 percent in retail. "The bananas are priced at Rs120-140/dozen. The same quality bananas were available at Rs80-100/dozen last week," said a buyer.
"Price of other fruits, including cherry, apricot, melon and honey dew are stable, but their quality has deteriorated from last week," the buyer said.
Shahjahan said price of majority of the fruits and vegetables remained stable or declined in the wholesale market due to their excessive supplies. Such items include watermelon, honey melon, banana, potato, tomato, and onion. "Ramazan plays no role in determining prices, it is supply and demand which does," he said.
The government is providing notable subsidy on select 18 essential food commodities at Utility Stores located nationwide. However, the size of the total subsidy (Rs1.3 billion) set aside in the name of Ramazan package is nominal to cater the demand of low income groups. As per the government’s own estimates, more than 50 percent population of the total of 190 million people lives below the poverty line.
Secondly, the available 6,000 plus outlets of utility stores are insufficient to serve a majority of the households. A big portion of the subsidised goods is sold to retail sellers, for which several employees of utility stores are found guilty almost every year.
Utility stores, however, are providing Rs80 subsidy on 20kg wheat flour bag, Rs20-60/kg on utility ghee, Rs10-15/kg daal channa, Rs15/kg white channa, Rs14/kg gram-flour, Rs50/kg dates, Rs56/950grams tea-packet, Rs16/kg basmati rice, Rs17/kg broken rice, Rs16-41/kg sella rice, and a Rs10-15/kg subsidy on daal moong, masoor, and mash.
Prices of edibles have already skyrocketed and are expected to rise even further. The government always fails to control the price hike, and its anti-price hike campaigns are limited to statements only. Very few were punished on overcharging contrary to other Muslim countries where authorities ensure price stability and supply of essential items in Ramazan.
The UAE’s Ministry of Economy has fixed the prices of 3,500 essential food items prior to Ramazam. The ministry has signed a deal with retailers to offer discounts up to 70 percent on 4,700 items during the holy month.
But in Pakistan, the month mostly comes up with high inflation.
Khurram Shahzad at Arif Habib Limited sees inflation below four percent for the month of June 2015. "However, this is a premature estimate, as the month has just crossed its middle days," he said. Inflation was recorded at 3.2 percent in the previous month of May.
The writer is a staff member
