Price of ghee has shot up by Rs 80 per 16-kg tin in the local market due to increase in prices of palm oil, which reached 850 dollars per ton in the world market, said market sources on Saturday. Traders linked ghee price increase to soaring prices of palm oil, which mounted by 50 dollars per ton in the world market during last three days.
"It is now traded at 850 dollars per ton surging up from dollars 800 per ton," they added. Similarly, price of soyabean oil also has gone up to a record high of 31 years in the world market, reaching 925 dollars per ton from 875 dollars per ton with 50 dollars per ton increase, they maintained.
With this increase, ghee is now being sold in the range of Rs 1330 to Rs 1410 varying its quality. However, price of the commodity in retail market is expected to be affected next week by this recent surge, as retail price of the ghee is expected to record Rs 5 per kg increase, retailers said.
It is pertinent to mention here that during end of August, palm oil price dipped by dollars 50 in the world market, but local ghee manufacturers did not decrease prices; on the other hand they have increased them due to surge in the crude oil in September.
According to retailers ghee price has been increased arbitrarily by the manufacturers, which reached maximum Rs 1410 per 16-kg. Manufacturers also hinted at further increase in ghee price, more likely by middle of the holy month and said that crude palm oil price in the world market was on the rise. They said that during last three days the price of edible oil reached Rs 2830 per 40-kg in the domestic market increasing from 2725 per 40-kg only during last three days.
It may also be mentioned that prices of wheat flour and ghee have not been included in the City District Government Karachi (CDGK's} Ramazan price list. "This could be a reason that wholesalers have taken advantage of it and created a shortage of ghee in the local market on Thursday- a day before start of Ramazan", retailers said.
They added that they had made several attempts to purchase ghee on the eve of Ramazan but failed because wholesalers refused to sell the commodity on the pretext of its unavailability in the market.
The food inspectors and CDGK's magistrates are completely oblivious to their responsibilities to check prices of essential kitchen items in the wholesale markets of the city and punish retailers by huge fines for "so-called" violation of official price list, they said.