17/10/2012 (Daily Times) -  The prices of ghee and cooking oil have reduced by Rs 200 per 16 kilogrammes (kgs) in the city providing some relief to the poverty-stricken people. The decline in rates came into effect following a drop in the international rates of palm olien.

For the last couple of months prices of both the commodities were on the higher side, which had a negative impact on the buying powers of an overwhelming segment of the population.

The 16 kgs ghee and 16 litres cooking oil rates now stand at Rs 2,400 and Rs 2,460, respectively as compared to the previous month’s prices of Rs 2,600 and Rs 2,650, manifesting a marked decline of Rs 200 in their rates.

Retailers have claimed that after a long break, manufacturers of branded ghee and cooking oil have passed on the impact of falling palm olien rates.

A ghee pack of one kg of a leading brand now costs Rs 191 as compared to its earlier rate of Rs 209, while 2.5 kgs ghee tin is now tagged at Rs 505 as compared to Rs 540.

Now a five kgs ghee tin sells at Rs 995 as compared to Rs 1,045. A ghee maker said that palm olien (C&F) Karachi price fell to $800 per tonne as compared to $1,012.50 per tonne in the first week of September.

Similarly, local rate of palm olien has dropped to Rs 4,030 per 37.324 kgs from Rs 4,720.

He claimed that reduction in ghee and cooking prices was at par with the price fall in palm olien and RBD palm oil in world markets.

As a consequence of decline in prices of both items, a marked surge was witnessed in demand of both the items by the consumers at retail and wholesale outlets.

A leading retailer situated in Tariq Road area acknowledged about the increase in demand of both the varieties of ghee and cooking oil specially during the last 10 days since the downward price came into affect.

Latest downward revision in prices of ghee and cooking oil have provided an ample opportunity to consumers hailing from the lower segment of the population to make purchases as per their requirements.

Another leading trader in the leading wholesale market of the country situated at Jodia Bazaar acknowledged about more than 25 percent increase in demand of both items at his outlet.

“Retailers are now placing higher demands for ghee and cooking oil during the last one week as the falling price of both items has compelled consumers to make bulk purchases from retail outlets, which is evident from higher demands at almost all city retail outlets,” he added.

Price differential per 16KG :

Ghee Cooking oil
Previous Rs 2,600 Rs 2,650
Current Rs 2,400 Rs 2,450