Candle prices up by 150 percent

30 Jun, 2007

Prices of candle has gone up by 150 percent in the local market due to higher demand and short supply, shopkeepers told Business Recorder. Shopkeepers said that demand of candles had registered sudden increase in the last two weeks owing to continued long hours power breakdown in general and after heavy rains in particular, which started from June 21.
A candle of same weight and length that was on sale at one rupee now costs Rs 2.5 per candle. Survey of shops in Jodia Bazaar and Gulshan revealed that after sudden increase in demand, the supply did not increase due to problem in mass production. Candles are generally produced by cottage industry, which has limited capability of producing candles.
Shopkeepers said that candle manufactories were also facing financial problems as well as they were not interested in increasing production, arguing that it was temporary increase in the demand.
They also feared that their capital might stick up for long period if power-supply improved and the demand declined. Regarding demand of candles, retailers said that on average, the demand of two packets, containing six candles per packet per day, exceeded to more than 20 packets per day.
About candle stock, they said they had limited stock of candle and if the demand declined, they might not face problem. However, if the demand continued, public might face problem in getting candles.

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