Saturday, June 12, 2010

Post budget commodity price hike is affecting people in Pakistan

After budget, prices of daily necessities shot up in the wholesale and retail markets in Pakistan. Even, Utility Stores Corporation (USC), the government subsidized chain stores, which sell commodities at lower prices compared to the wholesale shops, also revised its rates.

From June 10, 2010, prices of various commodities increased in the open market as well as USC stores.

Daily Times reported that traders and wholesalers intentionally increased the price of sugar in fear of sales tax.

At present, wholesale price of per kilo sugar stands at Rs.61 against Rs. 57– Rs.58 per kilo before budget. On the other hand, retail rates increased to around Rs.65 per kilo against Rs.62.

Fareed Qureshi, Secretary, Karachi Retailer and Grocer Group, held the wholesalers responsible for charging higher prices. He also admitted of a sharp drop in the demand of sugar as consumers changed their habits to cope with the high price of sugar. The same trend is also visible in other kitchen items such as rice, pulses, different varieties of flours etc.

At the UTC stores, per kilo sugar is sold at Rs.45 which is far lower than the wholesale market. Still people are not buying.

Prices of ghee and cooking oil increased to Rs.15 per kg. Currently, a tin of five kilo ghee is selling for Rs.674 against Rs. 600. A jar of 450 gram jam is priced at Rs.137 against Rs. 75. An 800 ml bottle of summer drinks is being sold at Rs. 20. An increase of Rs. 5 has been made

After the budget, such rise in commodity prices made people very unhappy, especially the poor people.

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