27/11/2010 (Daily Times), Karachi - Despite falling rates of palm oil in the international markets, Utility Stores Corporation of Pakistan (USC) has announced yet another increase in ghee and cooking oil rates available at all its outlets, which came into effect from Thursday, November 25.

The increase which followed recent enhancement in sugar rates by the corporation at a rate of Rs 10 per kg, has served as a shock for majority of consumers, which usually throng USC outlets in search of subsidised commodities

It may be recalled here that the fresh increase in ghee and cooking oil rates is the 4th increase of its kind during the last 75 days, which is likely to have adverse impact on the buying capacity of large segment of the underprivileged segment of the population.

Both the products are supplied by the Dalda Company to USC in bulk and the latest upward revision in their rates are likely to aggravate consumers financial burden already groaning under spiral increase in prices of essential commodities.

The increase — which was made by the corporation without taking into account pros and cons of declining buying capacity of helpless buyers is also anticipated in decreased sales of cooking oil and ghee at more than 150 USC outlets operating in Karachi.

It may be recalled here that some 75 days ago, utility ghee and cooking oil was available at USC outlets at subsidised rates of Rs 103 per kg, which was considered a great financial facility for the underprivileged segment of the population.

However, immediately after Eid ul Fitr an upward revision was made by the corporation in prices of both vital kitchen items at a ratio of Rs 23 per kg with new rates of Rs 126 per kg.

After around 10 to 15 days, the corporation announced another increase in prices of both the products as new price was fixed at Rs 130 per kg, squeezing further buying powers of its consumers.

Around a fortnight later, another increase of Rs 6 to Rs 7 was announced by the corporation in rates of both the products and after Thursday’s increase at a ratio of Rs 8 per kg, both ghee and cooking oil would be available to consumers at Rs 144 per kg thus turning corporations outlets as unattractive for consumers.

It transpired during a visit to one of the outlets of the USC situated at Frere Road, Saddar that buyers have reacted strongly to the fresh increase in prices of both the commodities terming it as unjustified and against the interest of buyers majority of which belong to lower segment of the population.

“I always prefer purchase most of the commodities including ghee and cooking oil in the hope of saving some amount but the newly enhanced prices would be a blow on my meager financial resources” claimed a buyer while replying to a query of the scribe.

Talking to the scribe, consumers at other USC outlets said pulling out the subsidy facility on essential items including flour, ghee, sugar, milk, tea, cooking oil, rice and many other such items has left little attraction for the low-income consumers group to waste their energy and invaluable time at USC outlets mainly owing to fast shrinking gap between the prices of essential items at the utility stores and the retail market.

The USC was established by the government with the sole objective of provision of subsidised commodities to the general consumers but on the contrary it has assumed the role of greedy retailers which never hesitates to pass on the burden of any increase in the rates of essential commodities” claimed a panicked buyer at a USC outlet situated at Block N, North Nazimabad.

An official of the USC responding to a query of the scribe termed the fresh increase as a sequel to the constant upward trend in the rates of palm oil in the international market compelling the corporation to pass on the additional cost to consumers.

As compared to the fresh increase in rates of ghee and cooking oil by the USC, a decline of Rs 4 per kg was registered in the rates of a 16 kg tin (canestar) of cooking oil as it would now be available to buyers at Rs 2265 compared to previous rates of Rs 2330, clearly manifesting a decline of Rs 65 per tin.

Wholesalers of Jodia Bazar have attributed the decline in cooking oil rates on account of plunging rates of palm oil in the international market, resulting in downward revision in cooking oil rates in the international market.