Pulses prices: private sectors belie government's claim

The dream of Minister of State for Finance Omar Ayub Khan that under an atmosphere of competition, the private sector will be compelled to bring down prices of essential food items, including pulses, is not coming true.
While presenting the Federal budget on June 5, the minister took strong exception to the increase in the prices of food items. He declared that most pulses would be made available at government-controlled prices at the utility stores immediately, arguing that it would generate price competition and bring prices of food articles in the open market down.
He fixed prices of gram (Chana) at Rs 30 per kilogram, Masoor at Rs 31, Mash Rs 53 and Moong at Rs 58. He asserted that there was ample stock of pulses with the government and utility stores would continue to sell these pulses at fixed rates as long as the demand for these pulses remained in the market.
A study conducted by PPI on Thursday revealed that private sector was showing no signs of mercy as prices of pulses in particular continued to be exorbitant.
Gram was selling at Rs 43 per kilogram, Masoor 48 per kilogram, Moong Rs 76 per kilogram and Mash at Rs 82 per kilogram at most of the outlets throughout Lahore, obviously at far higher prices than what the government had expected two weeks ago.
"Private dealers (in food articles) are well aware that the utility stores network is too inadequate to meet the demand for pulses, hence it is sticking to its position and in fact minting money as before the announcement of the budget," a shopkeeper in Allama Iqbal Town area observed.
Most shopkeepers are making mockery of the minister's statement that the utility stores would generate price war.
"The government is well aware that utility stores are far from offering competition to private sector, but it does not refrain from making illogical claims just to befool people," said a shopkeeper at the posh Model Town main market.
In the meantime, middle income people, including women, continued queuing at the utility stores under sultry whether conditions, questioning the quality of the foodstuff being sold cheaply.