The increasing trend in ghee prices continued as its price rose by Rs 10 for a 16-kilogram ghee can in Multan retail market. During the month of January, the price of one-kg ghee was Rs 62 and the same reached at Rs 90 in the beginning of the first week of July 2007.
Traders said this rapid increase in ghee prices would also affect the prices of biscuits, soaps and other items that used ghee as a raw material in their production. Replying to a question, he said that frequent increase in ghee prices had a negative impact on the purchasing power of common man, who could hardly afford the commodity at the current high prices, as a result a decline in the demand of ghee was witnessed in the wholesale markets.
At retail level one-kg of ghee is available for Rs 82 to a consumer. In January and February this year, the price of a 16-kg ghee can was recorded at Rs 1,000, while in March prices of ghee rapidly increased to Rs 1,050; in April an increase of Rs 130 was recorded and the price reached at Rs 1,180.
In May, after an increase of Rs 80, the price of ghee reached at Rs 1,260. In June the price reached at Rs 1,270 and in the first week of July 2007, the prices reached at Rs 1,280. So many ups and downs were seen in the month of May 2007, as 16-kg ghee can prices started from Rs 1,180 and reached up to Rs 1,370 and finally came down to Rs 1,260. The way prices of commodities are increasing; soon the poor will have to think twice before purchasing anything. There were rumours in the market that during this month prices of ghee will rise further.