Ghee prices raised

The branded edible oil processing companies have increased the prices of one kilogram and five kilogram oil packing without issuing any formal rate list in the local market. There was no check on the prices of edibles and other daily use items.
The distribution staff is communicating verbally with the retailers, as they are distributing the fresh stocks of the one and five kilogram packing in the market. The price of one-kg pack has been increased from Rs 97 to Rs 101, while the five-kg pack is now being sold at Rs 508 as against the price tag of Rs 493.
Retailers when queried about the snowball impact of one brand name resorting to the price adjustment agreed to the perception and said that soon all the local and multinational brand names would be readjusting the price accordingly. Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Amjad Rashid when contacted said the decision of price hike in edible oil was taken by the local and multinational brand names individual, as the international market was now settling down.
The PVMA chairman said the prices of edible oil in the Chicago market were inflationary during the last two months touching the mark of 850 dollars per ton. Now the prices have settled down to the range of 775 to 800 dollars per ton.
He substantiated his contention by pointing out at the downward adjustment of the 16-kg pack from Rs 1,400 to below 1,300 mark. He said the Chicago international prices benchmark was not expected to go down to the four months ago 450 dollars per ton level, however there was no chance of going above the 800 dollars mark in the near future.
The brand names have been progressively increasing the prices on the premise that the raw material for ghee and oil products was getting expensive with the passage of time.
There has been a constant increase in the branded ghee prices from Rs 60 per kg to that of the present price tag of Rs 101 justified by the brand names that they were not able to breakeven the processing without resorting to the price adjustments. Earlier, there have been strong rumours that the one-kg of oil pack might cross the Rs 110 mark and the five-kg well above Rs 530 per pack mark. However, the international price stability has caused the prices to readjust with less margin as was originally expected.