24/05/2011 (Daily Times) - Manufacturers of ghee and cooking oil have made pre-budget increase in ghee and cooking oil rates.

They contributed this increase to upward revision in palm oil rates in the international market.

The federal annual budget is expected to be announced in second week of June. The fleecing of consumers continued unabatedly on one pretext or another as evident from the latest upward revision in prices of both the commodities.

The unending cycle of increase in price of the most vital kitchen items continue taking its toll on consumers specially those belonging to lower segment of the population.

During the last one year an increase upto 25 percent was registered only in the rates of ghee and cooking oil in Karachi alone reflecting nature of traders and manufacturers.

A 16 kg tin of Meezan ghee, previously available at Rs 2,540 after the recent surge in its price is now available at Rs 2,580. Similarly a 16 kg tin of cooking oil of the same company after the latest increase is now available at 2,460 to Rs 2,470 for the same weight.

Previous month 16 kg tin of Meezan brand ghee was sold at retail level at Rs 2,400 but during the last one month a whimsical increase was made in its rates.

The current upward revision in rates of the most demanding commodity is likely to hurt buying powers of majority of consumers already groaning under unabated cycle of inflation.

The successive upward revision in ghee and cooking oil prices might decrease their demand in the retail markets as feared by the General Secretary, Karachi Retailers and Grocer Group.

“An overwhelming majority of the consumers, on account of frequent surge in prices of ghee and cooking oil, have sharply reduced their daily buying needs which reflect their plunging buying capacity” he contended.

He said all leading ghee and oil manufacturing and importing companies, in the garb of increase in palm oil prices in the international market are likely to follow similar line of action which may come into affect during the current week.

Other major reason offered by such elements is dwindling value of local currency against US dollar.

The majority of the importers and manufacturers have two to three months of stocks in warehouses but they never miss an opportunity to reap maximum financial benefits in case of any price increase in international market.

He admitted purchasing power of a large number of consumers as a consequence of regular increase in prices of ghee and cooking oil related products have sharply declined.