Reduction in ghee, cooking oil prices: retailers reluctant to pass on benefit to consumers

Despite the fact that cooking oil/ghee prices declined by Rs 40 per 5-kg in the wholesale market, retailers are reluctant to pass on the benefit to consumers, a survey carried out by Business Recorder revealed.
Trader at Ghanj Mandi (grains wholesale market) said cooking oil and ghee prices touched Rs 950 per 5-kg in February due to increase in international palm oil prices, but now palm oil price in international market are witnessing declining trend due to which local cooking oil producers have started decreasing the prices.
The survey observed that during the week under review prices of oranges, onions, potatoes, chicken meat, tomatoes, carrot and LPG have increased. Last week onion was selling at Rs 15 per kg, potatoes at Rs 18 per kg, chicken meat at Rs 215 per kg, tomatoes at Rs 25 per kg, carrot at Rs 15 per kg, LPG at Rs 120 per kg. Now these commodities are selling at following rates: Onions Rs 20 per kg, potatoes Rs 22 per kg, chicken meat Rs 225 per kg, tomatoes Rs 30-35 per kg, carrot Rs 20 per kg and LPG Rs 125 per kg.
A buyer when asked about the reduction in prices of cooking oil said she doesn't know anything about this as she was purchasing the commodity in pouch packs (available in half and one kg packing) which costs Rs 95. She said, "Now at a time when wholesalers have reduced the price of cooking oil by Rs 8 per kg, shopkeepers are reluctant to sell the commodity to general consumers at reduced rates. The government should force the retailers to sell household items at prescribed rates."
According to traders, palm oil price in Malaysia has declined from $1248 per ton to $1142 per ton in March. They said that after increase in palm oil prices local cooking-oil/ghee manufacturers increased the commodity prices by some Rs 200 per 5-kg tin of good quality cooking oil which reached Rs 950 per 5-kg from Rs 750 in February in retail market but in wholesale market it was available at Rs 825 per 5-kg.
The survey noted that across the twin cities of Rawalpindi/Islamabad retailers are charging at will for many essential kitchen items such as chillies, turmeric, sugar, lose tea, pulses and spices. Mostly, retailers are selling good quality ghee at Rs 185 per kg against the reduced price of Rs 178, normal quality ghee at Rs 170 per kg against its reduced price Rs 157 per kg.
Similarly the price of sugar during the week under review jacked up by Rs 180 per 50-kg bag in the retail market. Previously, it was available at Rs 3,100 per 50-kg bag, which is now selling at Rs 3,280 per 50-kg in the retail market. The prices of most of the fruits during the week under review also registered a handsome increase as normal quality orange was available at Rs 100 per dozen a week ago and now it was selling at Rs 180 per dozen, apple from Rs 90 to Rs 120 per kg, banana from Rs 60 to Rs 80 per dozen and guava from Rs 50 per kg to Rs 60 per kg.
The suppliers of non-branded tea have increased price by Rs 70 per kg. One month ago loose tea was selling at Rs 430 per kg, which is now available at Rs 500 per kg, the survey noted. The branded tea companies have increased the price of one kg tea packs by Rs 35, while these companies have also reduced the packing size of different tea packs eg 200 gram pack to 190 gram and 400 gram pack to 380 gram.
The prices of chilies, turmeric and branded salt have been increased by Rs 20, Rs 30 and Rs 2 per kg, respectively. Per kg chilies were available at Rs 200 last week, turmeric at Rs 270 per kg and branded salt at Rs 13 per kg, which are now selling at Rs 220 per kg, Rs 300 per kg and Rs 28 per kg, respectively.