March 13, 2013

Pakistan's dry milk prices increase

Pakistan's dry milk prices at retail and wholesale market were raised posing financial hardship to a large number of consumers of the port city.

The increase was termed as gross injustice by majority of consumers who feared further upward revision in rates of many essential commodities when the caretaker set-up would be introduced in the country.

In previous week a kilogramme (kg) of dry milk was available in the wholesale market at PKR390 (US$4) per kg but after the fresh upward revision in its rates by the stakeholders, it is currently available at PKR400 (US$4.09) per kg. Similarly retail prices also surged as currently it is available at PKR470 (US$4.80) to PKR490 (US$5) per kg as compared to old rates of PKR440 (US$4.50) to PKR460 (US$4.70) per kg.

It may be recalled here that no proper mechanism exists at the government level to check the activities of elements involved in profiteering and hoarding as those involved in minting money from helpless consumers appear to have been given a free hand to fix prices of their products as per their whimsical approach.

The increase was unjustified in the sense that no major upward revision was reported in dry milk prices at the international level and the fresh price appeared to be brainchild of a few individuals, who usually manipulate market prices.

A leading wholesaler of the dry milk at Jodia Bazaar, confirmed about the increase in the price of the commodity claiming that no such increase was witnessed in the international market, which clearly reflects that it is aimed at making financial gains. However, he did not rule out the possibility of increase on account of persistent decline in the value of local currency against the dollar, which compelled importers and wholesalers to make upward revision.

Another milk wholesaler in Jodia Bazaar replying to a question admitted that a large number of traders of fresh milk also purchased in bulk powder milk for increasing quantity of their product, which also helps them enhance volumes of their products manifolds.

Replying to a query, he also blamed Federal Board of Revenue for increasing withholding tax ratio of imported milk from 1.0% to 5.0%, which may have compelled importers to raise prices of the imported product.