Dar concerned about increase in sugar price

Islamabad

Finance Minister Ishaq Dar has expressed concern over slight increase in price of sugar in the domestic market after allowing exports of 225,000 metric tons of the commodity and directed the Ministry of Commerce to take all corrective measures.

The National Price Monitoring Committee meeting held at Finance Division under the chairmanship of Senator Ishaq Dar, Federal Minister for Finance, Revenue, Economic Affairs, Statistics and Privatisation.

The minister directed Ministry of Commerce to vigilantly monitor the prices and if there was any erratic movement, take appropriate remedial action. With regard to prices of beef and mutton, he directed the Ministry of National Food and Security to take all the stakeholders on board and take corrective measures to curb smuggling. He advised provincial governments to be more vigilant to control prices.

The meeting was attended by the representatives from Punjab, Sindh, Khyber Pakhthunkhwa, Islamabad Capital Territory, ministries of Industries, Law and Justice, Commerce, National Food Security and Research, Cabinet, Planning, Development and Reforms, Inter-Provincial Coordination, Statistics Division, Pakistan Bureau of Statistics, Utility Stores Corporation and Federal Board of Revenue.

The meeting was informed that the headline inflation measured by CPI increased by 3.7 percent in December 2016 compared to 3.8 percent of previous month and 3.2 percent of December last year. On average during July-Dec FY 2017 it is recorded at 3.88 percent as compared to 2.08 percent in corresponding period last year. On monthly basis the CPI and food inflation remained lowest by -0.7 percent and -1.9 percent since February 2015. The CPI is tamed down and in control. The other inflationary indicators have also been contained. 

The meeting noted continuous decline of SPI since last week of November 2016. It recorded continuous six weekly decline which has brought food inflation to 3.0 percent in December 2016 compared to 3.3 percent of previous month while non-food inflation remained at same level of previous month at 4.2 percent, whereas core inflation increased by 5.2 percent compared to 5.3 percent of previous months and SPI and WPI in December 2016 recorded at 0.5 percent and 3.1 percent respectively, compared to 0.6 percent and 2.6 percent of previous month.

The Sensitive Price Indicator (SPI) for the week ended on 5th January 2017 decreased by 0.12 percent. Out of 53 items, nine (09) items which recorded decrease in their prices are tomatoes 10.20 percent, potatoes 5.02 percent, chicken 4.63 percent, mash pulse 1.29 percent, onions 0.91 percent, garlic 0.87 percent, moong pulse 0.57 percent, masoor pulse 0.06 percent and red chilly powdered 0.05 percent. The decrease in prices of 09 items brought an impact of 0.26 percent in SPI decline. Sixteen (16) items recorded increase in prices including sugar 1.64 percent, eggs 1.55 percent, bananas 1.51 percent, LPG 1.22 percent, rice Irri-6 0.61 percent, rice basmati 0.47 percent, mutton 0.38 percent, wheat 0.17 percent, vegetable ghee tin 0.13 percent, gram pulse 0.10 percent and wheat flour 0.08 percent. The prices of twenty eight (28) items remained stable which shows that there is overall price stability in the country.

The meeting noted the price movement of essential items on month-on-month and year-on-year basis. It was observed that prices of wheat, wheat flour, chicken, onion, tomatoes, cooking oil, vegetable ghee, masoor pulse, moong pulse, mash pulse decreased in December 2016 compared to corresponding month of last year. Prices of cooking oil, vegetable ghee loose, vegetable ghee (tin), chicken, banana, tomatoes, rice basmati, rice irri, and mustard oil are much lower than 2013 prices.

The meeting also noted the increasing trend in prices of eggs, garlic, milk powder (NIDO), beef, mutton, gram pulse. The minister expressed concerns over increasing trend of these food commodities and directed the Ministry of National Food and Security and Competition Commission of Pakistan to closely monitor the situation, control the undeclared monopoly, take corrective measures and arrest any cartelisation, particularly in milk and meat products as well as mitigate any expected rise in prices of pulses. For gram pulse he directed Ministry of National Food and Security and USC to carry out inter-ministerial consultations with all the stakeholders in order to address any abnormal spike in prices. 

The meeting also reviewed the essential items’ prices in sasta bazaars and open markets and noted that the prices were significantly lower in sasta bazaars as compared to open markets. The minister urged that the people should benefit from these bazaars.

The meeting also noted the change in prices of selected essential kitchen items in low and combined income group during current week ending on 5th January 2017 compared to previous week and corresponding week of the previous year. The meeting noted that in low and combined income group, the price index declined by 0.29 and 0.24 basis points respectively.

The meeting also reviewed the regional price comparison of essential commodities among Islamabad, New Delhi and Dhaka and observed that the prices of 9 items including wheat, wheat flour, chicken farm, petrol, diesel, rice basmati, sugar, mash pulse and beef are lowest in Pakistan as compared to New Delhi and Dhaka and second lowest in nine items which include onions, masoor pulse, moong pulse, eggs, gram pulse, vegetable ghee, milk fresh, red chili and tomatoes. The meeting noted that the prices among the provinces are stable.