Most commodity prices decrease: Impact of falling market
Published on: October 22, 2023.
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Inflation in Pakistan has slowed down due to declining prices of petroleum products and the strengthening of the rupee against the dollar. However, the prices of packaged goods from multinational companies remain unchanged, despite the falling food prices. While the wholesale prices of sugar, flour, ghee, pulses, and rice have decreased, retailers are still profiteering.
Decrease in Food Prices
Abdul Rauf Ibrahim, chairman of the Karachi Wholesale Grocers Group, stated that the prices of food items are rapidly decreasing due to lower fuel prices, a stronger rupee, and crackdowns on hoarding and profiteering. However, stricter measures are necessary to provide relief to the general public.
Here is an overview of the current prices:
- Sugar: The wholesale price of sugar has fallen to Rs128, while the ex-mill price is Rs124.
- Wheat: The price of wheat stands at Rs95 per kg.
- Flour: Fine flour is being sold at Rs131, and extra fine at Rs144, down from their previous prices of Rs180 and Rs200 respectively.
- Rice: Rice prices are decreasing significantly due to the arrival of the new crop.
Despite the decrease in food prices, some shopkeepers are still selling at higher prices by utilizing old stock.
Decrease in Retail Prices
The decrease in prices is also reflected at the retail level:
- Ghee: The price of ghee has come down by Rs40 to Rs530 per litre pouch.
- Rice, Flour, Pulses: In Karachi, prices of rice, flour, and pulses have declined by Rs10 to Rs70 per kg.
Unchanged Packaged Goods
Despite the decline in the dollar and reduced transport costs, multinational companies have not reduced prices for tea leaves, dry milk, biscuits, soap, detergents, and other packaged items.
Meanwhile, the prices of bread, rusk, bun, and other breakfast items have increased, justifying the rising price of flour.
It is essential to address the issue of profiteering and take measures to ensure fairness in pricing.
Conclusion
The decline in food prices due to lower fuel prices and a stronger rupee is providing some relief to consumers. However, the lack of price reduction in packaged goods from multinational companies and profiteering at the retail level remain concerns.
Source: The Express Tribune
