ISLAMABAD: The National Price Monitoring Committee (NPMC) wanted Ministry of National Food Security and Research to be in touch with the provincial governments over rising trend of wheat/flour and sugar prices, and take necessary measures to ensure provision of these items at affordable prices to the people.
A meeting of the NPMC presided over by the secretary finance directed the food ministry to take immediate steps to control the wheat/flour and sugar prices by taking on board the provincial governments.
The meeting also urged the provincial governments to provide support to market committees in collaboration with the district administration to play proactive role by removing the price disparity among the provinces, and also ensure smooth supply of essential items.
The meeting also discussed the price trend of essential food items. Representatives from the provincial governments, the Islamabad Capital Territory, ministries of Industries, Commerce, Law and Justice, Planning, Development and Special Initiatives, National Food Security and Research, Inter-Provincial Coordination (IPC), the Competition Commission of Pakistan, the Cabinet Division, and the Pakistan Bureau of Statistics, were present.
The meeting was informed that CPI inflation year-on-year was recorded at 9.3 percent in July 2020. It was noticed that the Sensitive Price Indicator (SPI), which monitors the price movement of 51 essential items on weekly basis recorded a decline of 0.22 percent for the week ended on 13th Aug.
This was second consecutive decline in the SPI during the month of August, which augurs well to tame down inflationary pressure in the country. During the week, 11 items recorded decline in their prices, while 22 items remain stable.
The provincial governments and the ICT informed the meeting that they were regularly monitoring the prices and taking strict action against hoarding and undue profiteering. Government in consultation with all the stakeholders is proactively taking measures to control the general price level of daily use items at the federal, provincial and district levels.
The committee also discussed the price movements of essential items among the provinces/ICT and observed variations in price level. It was decided that all the provincial governments and the ICT administration will take proactive measures to control the undue price hike of essential items in the market.
The Ministry of National Food Security and Research was directed to consult the provincial governments and remain vigilant to control the wheat/flour and sugar prices. The meeting further suggested that the provincial governments should provide support to market committees in collaboration with the district administration to play a proactive role by removing the price disparity among the provinces, and also ensure the smooth supply of essential items.
The Utility Stores Corporation (USC) informed that the corporation was procuring stock of commodities (pulses/rice) through open competitive bidding. The tender committee at the time of opening of bids/tenders examines the samples thoroughly, so as to ensure the selection of good quality product as per prescribed specifications.
Hence the commodities procured is strictly monitored and checked randomly to ensure provision of quality items. Further, the surprise inspections are also carried out to examine the stocks at warehouses. The chair directed to further strengthen the quality control mechanism of essential items at the Utility Stores.
The meeting was noted that profit margin between wholesale and retail is huge in items like apples, bananas, gram, mash, masoor, tomatoes, and onions. The meeting urged that the provincial governments should take corrective measures to check undue profit margin.
The PBS was also directed to share the province-wise margin between wholesalers and retailers, so that the provinces may take prompt action against anti-market practices. The CCP gave detailed presentation on the structure of sugar and poultry industry and their existing price mechanism.
The meeting directed the CCP to provide an action plan with concrete recommendations to check anti-market practices in these sectors. While concluding the meeting the chair emphasised that provision of essential commodities at affordable prices is the foremost agenda of the present government.
There is dire need that the provinces should take strict action against hoarding, adulteration, smuggling and over-due profiteering to ensure uninterrupted supply of daily use items to the masses at lower prices and the federal government will provide all possible cooperation in this regard for stability of prices in the country.
Copyright Business Recorder, 2020
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