Costly energy deepens consumers’ economic pain
KARACHI: The cost of living has gone up significantly amid surging utility bills and transportation expenses as consumers witnessed a mixed trend in prices of food items over the last Ramazan.
As per data from the Sensitive Price Index (SPI), the average national price of a 20kg flour bag currently stands at Rs2,500-2,960 as compared to Rs1,295-3,000 prevailing on 1st Ramazan in 2023.
Wheat 10kg bag and one-kg fine flour prices were Rs1,191 and Rs146 last year as compared to the current Rs1,240 and Rs156 per kg despite claims of flour millers of bringing down the rates after huge import of 1.980 million tonnes of wheat by the private sector costing $573 million during 7MFY24 to avert flour prices from crossing Rs200 per kg.
During the same period last year, the government had imported 1.938m tonnes valuing $774m, thus posting a drop in the average per tonne (APT) of imported wheat to $289 from $399 in the above period.
Food prices show mixed trend over last Ramazan
The average national prices of onion and potato are Rs180-340 and Rs50-110 per kg as compared to Rs100-220 and Rs40-100 per kg last year.
The five-litre cooking oil (Dalda and similar varieties), 2.5kg ghee of Dalda, Habib, etc and one-kg pouch of ghee of Dalda, Habib etc are available at Rs2,500-2,750, Rs1,200-1,400 and Rs470-510 as compared to Rs3,140-3,500, Rs1,400-1,720 and Rs570-639 on the first day of 2023 Ramazan.
Like past years, several ghee/cooking producers are also offering price discounts this year to pass on the declining trend in world prices coupled with the gaining rupee from Sept 7, 2023 when one dollar was equal to Rs307.10 compared to the current Rs278 in the interbank market that had helped bring the landed price of palm oil as well as other raw materials and finished items.
Palm oil imports plunged to 1.735m tonnes ($1.611bn) in 7MFY24 from 1.927m tonnes ($2.446bn) in the same period last year. The APT price of palm oil fell to $928 from $1,269 in the above period.
The prices of gram pulse and mash, which were Rs220-320 and Rs 280-480 per kg last year, are now Rs235-300 and Rs470-600 per kg.
The chilly powder (less than 250 grams) price of a branded company has risen to Rs400 from Rs215 last year.
Beef with bones (average quality) and mutton (average quality) are now sold at Rs600-1,100 and Rs1,400-2,200 as compared to the national average price of Rs500-900 and Rs1,100-1,800 last year. Retailers continued to blame high exports of meat and meat preparations as more companies are entering this business after huge export potential in various countries.
According to the PBS data, meat and meat preparation exports rose to 70,458 tonnes ($288m) in July-Jan FY24 from 50,235 tonnes ($226m) in the same period last year.
The national average rate for chicken broiler (live) is Rs380-520 versus Rs325-550 last year.
Gas charges up to 3.3719 mmBtu have swelled to Rs1,976 from Rs295 last year.
Petrol and diesel rates are Rs281 and Rs288 per litre as compared to Rs272 and Rs294 last year.
Surging rice exports
Rice basmati broken (average quality) and Irri 6/9 (Sindh/Punjab) now cost Rs160-280 and Rs140-200 per kg as compared to Rs160-240 and Rs80-180.
Market players also blame higher exports of other than basmati varieties after the ban imposed by India. Other varieties exports witnessed a huge rise to 2.924 million tonnes in 7MFY24 fetching $1.658bn from 1.661m tonnes that earned $746m in the same period last year.
No relief in tea prices
The national average price of a branded tea pack (less than 250 grams) remained unchanged at Rs542-558 despite a bullish rupee and drop in world tea prices. Total tea imports in 7MFY24 swelled to 161,823 tonnes ($391m) as compared to 145,700 ($364m) in the same period last fiscal, showing a drop in average per tonne price to $2,418 from $2,497.
A branded powdered milk of less than 500 grams pack now costs Rs800-850 as compared to Rs660-720 last year.
Published in Dawn, March 14th, 2024