The food inflation, computed by Pakistan Bureau of Statistics (PBS), has no relevance with the prices prevailing in the retail market, revealed a survey conducted by Business Recorder. To find out the reality, Business Recorder visited many markets in the twin cities including wholesales as well as in the retail market. It was observed that prices of some food items mostly vegetables and perishable items are below the government fixed prices and prices of a number of non perishables were higher than the government fixed prices.
It was noted that there is no effective system in the market to monitor the prices and in the absence of such a system the price control committees set up by the provincial governments at district level have failed to enforce the official price list of edible items especially at retail level.
The officials responsible to collect data for PBS for computing food inflation are compiling their data on the basis of the rate lists issued by the market committees which have no relevance with the prices in the market. The market committees established by City District Government Rawalpindi (CDGR) and Administration of Islamabad Capital Territory (ICT) are circulating official rate lists of different perishable essential kitchen items on daily basis and non perishable daily use items on monthly basis.
A comparison of the market rates and the officials rates reveal that government has fixed tomato prices at Rs 55 per kg but in market it is being sold at Rs 50 per kg, official rate of ginger is Rs 95 per kg, which is being sold in the range of Rs 100-120 per kg, fixed price of local garlic is Rs 130 per kg, but is available in the range of Rs 110-120 per kg, while official rate of China garlic is Rs 260 per kg which is being sold at Rs 320 per kg.
An official told this correspondent that most of the people assigned to check the prices of daily use items on daily basis are not performing their duties, and instead of visiting the markets they collect price lists of a certain month or week and forward it to higher authorities at PBS where this inaccurate data is being used to compile food inflation.
The survey noted that even the departments responsible to enforce the official price list including ICT and CDGR are unaware of the prices of daily use items like meat, pulses, firewood, coal, rice, milk and several other items. The District Price Control Committee has issued official price list of daily consumable items fixing mutton price at Rs 500 and beef at Rs 280 per kg, contrary to this mutton is being sold at Rs 680 per kg in Rawalpindi and Rs 720 in Islamabad, while beef with bones is being sold at Rs 380 per kg and boneless at Rs 430 per kg.
According to a notification issued by the District Price Control Committee, the price of firewood is Rs 18 per kg but it is being sold at Rs 22, coal is Rs 56 and it is being sold at Rs 60. Red chilli price is Rs 288, but it is being sold at the rate of Rs 325 per kg. Gram pulse price is at Rs 130 per kg but it is being sold at Rs 140 per kg. 'Gur' is Rs 95 per kg and its selling price is Rs 120, best quality old basmati rice price is Rs 110 per kg but is being sold at Rs 130 per kg, 'daal channa' is being sold at Rs 140 against Rs 115, masoor rate is Rs 135 but it is being sold at Rs 170, white channa price is Rs 115 per kg but is being sold at Rs 130 per kg.
Similarly, the District Price Control Committee has fixed the rate of milk at Rs 70 but milkmen are selling it at Rs 80 to Rs 100 per litre (milk with some quantity of water at Rs 80-90 per kg while milk without water at Rs 100 per kg) and fixed price of yogurt is Rs 80 per kg but is being sold at Rs 100.
Nowhere in the twin cities is roti available at fixed price of Rs 5 as tandoor owners are selling it at Rs 7 per roti while fixed price of a naan (120 grams) is Rs 7 which is being sold at Rs 8-10 in the market. Tandoor owners had increased roti and naan prices in 2012 but the market committee is unaware of the situation.
Price control magistrates are weekly raiding different areas and heavily fining those shopkeepers involved in overcharging consumers but shopkeeper continue to set prices higher than those fixed by the government as paying a fine of Rs 5,000 is recoverable from selling two bags of 50 kg of basmati rice at higher prices.
Jandad Khan Chairman Market Committee Rawalpindi told Business Recorder that they are continuously visiting city markets to check prices. "We have also registered dozens of FIRs and imposed fines on profiteers," he claimed. He said that they were trying to implement the prices issued by the CDGR.
A shopkeeper Nadeem Ahmad Raja when asked about the price lists of non perishable items, said that nobody has ever given him an official price list; when he was asked at what price best quality basmati rice is available he said at Rs 130 per kg which in wholesale costs Rs 75 per kg as a 50 kg basmati rice bag is available at Rs 3,500 in wholesale market. It was observed that the retailers especially Karyana merchants are not passing on the benefit of the price reduction to end consumers as within past one week sugar price has declined by Rs 4.2 per kg in wholesale market - from Rs 3,300 per 50 kg bag to Rs 3,080 per 50 kg bag - but retailers are still selling it at Rs 68 per kg. The survey observed that the authorities have no effective monitoring system to compel the retailers to sell vegetables and other daily use items at official rates.