As the month of Ramazan progresses, the disagreement and "Nora Kushti" between CDGK, wholesalers and retailers over the prices fixed by CDGK of essential items and other commodities, is on the rise. The wholesalers claim that the prices fixed by the price control committee are unrealistic and they are refusing to sell at the declared prices.
And according to a recent news report, fruit traders operating at the new Sabzi Mandi refused to attend a CDGK meeting, called last Friday, to discuss the price control list of vegetables and fruits. They sated that they would talk to CDGK officials only after they were freed of extortionists from different political parties.
Whereas CDGK officials are insisting that the prices have been fixed after due consultations with the traders and various consumer protection organisations in the city. However, according to our information, no useful discussions had taken place, as the participants had not been given enough time to survey or study market prices.
According to a notification issued by Directorate of Industries, last week, the Secretary Labour, Transport and Controller General of Prices and Supplies, Sindh, announced 10% reduction in the existing prices of vegetable ghee and cooking oil as a "Ramazan Package". The notification stated: "All shopkeepers/retailers will be required to exhibit a price list at conspicuous place of their establishment.
"Compliance of the directives will be monitored by all the DCOs and Special Magistrates, who will take action under Profiteering and Hoarding Act, 1977 as well as the Criminal Procedure Code and impose penalties for violation".
But when the Secretary, PVMA was contacted to confirm this price reduction, he stated that he had no knowledge of such reduction.
Prime Minister Shaukat Aziz has also announced a Ramazan package of Rs 650 million through the Utility Stores, which are to provide essential daily use items to consumers at reduced prices during Ramazan.
However, there are only 56 Utility Stores in Karachi, catering to a population in excess of 16 million. Although the government is providing subsidy to these stores, the plain fact is that these stores in Karachi cannot cope with the heavy rush of consumers.
However, it seems that this time the City Government is serious in controlling prices and providing relief to the consumers. The Sindh Governor has issued an ordinance providing a mechanism to check prices of essential commodities and to curb profiteering and hoarding. The ordinance states: "dealers and producers shall supply information regarding production, purchase, sale or distribution of essential commodities as required by the district controller.
"The district controller may, by notification in the official Gazette, fix specific maximum prices of essential commodities and different prices may be fixed for different localities or for different classes or categories of any essential commodities".
It also states that nobody would be allowed to sell any essential commodity at a price higher than the maximum price fixed. Any person who contravenes the order, shall be punished with imprisonment or fine which may extend to Rs 10,000 or with both.
The Ordinance states that the Deputy District Officer (Revenue) shall be responsible to check the prices, stock and record of essential commodities and for the implementation of the Ordinance under the supervision of executive District Officer (Revenue).
City Nazim Mustafa Kamal has also taken positive steps to check prices. Inaugurating the first model Consumer Center at the Water Pump Chowrangi, he stated that the city government officials have been provided magisterial powers and have been directed to check standards of daily use items and keep a check on their prices.
The CG has established consumer complaint centres in every town, where consumer complaints can be registered. It is the first time that officials of the city government were playing an active role against profiteering. Representatives of the Consumer Rights Council would also be accompanying the magistrates.
City Nazim has stated that the city government had stepped up the campaign against profiteering and more than 100 persons had been sent behind the bar for one to 15 days while 700 others were challaned. He said representatives of CRC were being given space for offices in city government departments to enhance their output.
These are all positive steps, but not the solution. Abid Ali Shah, EDO, City Government has tried to work out prices which are acceptable to all, but the price list have not taken into consideration the inherent problems and hidden factors that are linked when fixing prices of commodities.
I have been attending these price control meetings for the last several years and have realised that they were just a waste of time, as an unrealistic price list is difficult to enforce.
Fixing prices of sensitive items need time and proper research and adhoc committees one week before Ramazan and misguiding press release is not the solution. We have been suggesting for the past several years that the City Government should set up a permanent committee, representing all stake holders, which should meet on the first Tuesday of every month to fix the prices of essential commodities.
However, fixing the prices of fruits and vegetables is far more complicated, as many factors are involved, including climatic conditions, transport costs, quality and size, wastage and most important, the various agents and brokers involved in the transactions before the products actually reach the Sabzi Mandis and then finally the consumers.
Majid Aziz, whom I know from my old textile days and now he is the President elect, KCCI, has highlighted "Government subsidies or market mechanisms determine prices of essential items". He has advised the city administration to demand subsidies from the Federal government for the commodities brought into Karachi if it really wants to offer essential items to consumers at affordable prices.
He has stated that: "We at the KCCI are all in favour of lower prices. However, we should also appreciate the fact that it is not prudent for anyone to disregard one's costs and sell at dictated rates, rather than letting the market forces determine the prices. I would advise the city administration to hold parleys with the wholesalers and ascertain the actual cost of these commodities before taking unilateral and arbitrary decisions."
One can only hope that this Ramazan the steps taken by the present City Government will be more effective in controlling prices and the consumers will finally receive the protection they deserve.
- Helpline Trust