Provinces asked to control prices of wheat, sugar

ISLAMABAD: The National Price Monitoring Committee (NPMC) on Friday asked the provincial governments to check wheat/flour and sugar prices in the domestic market after witnessing massive profit margins of up to 50 percent earned by wholesalers and retailers on perishable items.

Officials said the NPMC took notice of consistent rise in prices of food items and asked the provincial governments to control prices of essential commodities.

It was noted that profit margin between wholesale and retail is huge in items like apples, bananas, gram pulse, Mash pulse, Masoor pulse, tomatoes and onions.

The NPMC urged that provincial governments should take corrective measures to check undue profit margin. “Bureau of statistics was also directed to share the province wise margin between wholesalers and retailers so that provinces may take prompt action against anti-market practices.”

A statement, after NPMC meeting, chaired by the secretary finance, called for the provincial governments to provide support to market committees in collaboration with district administration to play proactive role by removing the price disparity among the provinces and also ensure the smooth supply of essential items.

“Ministry of National Food Security & Research was directed to consult the provincial governments and remain vigilant to control the wheat/flour and sugar prices, and take immediate necessary measures to ensure provision of these items at affordable prices,” the statement said.

“It was further suggested that provincial governments should provide support to market committees in collaboration with district administration to play proactive role by removing the price disparity among the provinces and also ensure the smooth supply of essential items.”

The committee also discussed the price movements of essential items among the provinces and Islamabad capital territory (ICT) and observed variations in price level. It was decided that all provincial governments and ICT administration will take proactive measures to control the undue price hike of essential items in the market.

The Competition Commission of Pakistan (CCP) gave detail presentation on structure of sugar and poultry industry and their existing price mechanism. The CCP informed the NPMC that it had prima facie found possibility of cartelization in poultry sector in its interim investigation report but the detailed report would be submitted before the forum next meeting. With regard to sugar sector, the CCP did not find out any cartelization so far.

Utility Store Corporation (USC) informed the meeting that it was procuring stock of commodities (pulses/rice) through open competitive bidding.

“The tender committee at the time of opening of bids/tenders examines the samples thoroughly so as to ensure the selection of good quality product as per prescribed specifications,” the statement said. “Hence the commodities procured is strictly monitored and checked randomly to ensure provision of quality items.” Further the surprise inspections are also carried out to examine the stocks at Warehouses.