September 14, 2007
Consumer Rights Commission of Pakistan (CRCP) has said that the government has once again failed to keep a strict check on profiteering and hoarding of essential items ahead of Ramadan. The skyrocketing flour prices are breaking the bone of domestic consumers while the “bumper wheat crop” is being exported and smuggled to other countries, said CRCP.
Abrar Hafeez, Secretary General CRCP, said in a press release that the price control mechanism developed so far by the government has proved ineffective in checking the rise in prices of essential items. The skyrocketing price of flour is jeopardizing the capacity of a common man to arrange two meals a day for his family in the holy month of Ramadan. It is becoming increasingly difficult for the consumer to purchase flour despite that about 23.5 million tons of what was produced this year, which is higher than the annual domestic consumption of about 22 million tons.
He deplored that in the last few days, the prices of essential items have increased from 30 to 100 percent, which speaks volumes of ineffectiveness of the government regulation. In some areas, the price of 20 kg flour bag has increased by Rs.100. Similarly, price of dal chana was recorded at Rs.34 per kg which now has gone up to Rs.42 per kg. Similarly, prices of vegetable ghee and dates have increased by Rs.10. Fruit has gone beyond the reach of common people due to high prices. Abrar Hafeez stressed upon the government to release the wheat stocks to flour mills without delay in accordance with the demand. He demanded strict measures against smugglers and hoarders of essential items.
Abrar Hafeez said that like prices, there was no effective check on quality of food being sold in market, especially in weekly bazaars. “The shopkeepers have nothing to fear, as fines imposed for adulteration and overcharging are hardly enough to deter them from unfair trading”, he said.
CRCP Secretary General appreciated that the government has established 3500 utility stores, which are providing necessary kitchen items on subsidized rates. However, he said, these stores can cater to only a small population. According to an estimate, for a cluster of 45,715 individuals, there is present only a single utility store with insufficient subsidized items on board. Moreover, consumers often complaint about the poor quality of items sold by the utility stores. The management of utility stores need to take care of consumer concerns.
CRCP has demanded that ad-hoc measures to control profiteering and hoarding would yield nothing. He suggested that penalties for unfair trade practices should be increased. Moreover, the government should develop enough stocks of essential items for release in the market to control prices.