Middlemen responsible for spike in price of essential commodities, says NPMC

ISLAMABAD: The National Price Monitoring Committee (NPMC) continued blaming the middlemen for spike in the prices of essential commodities and noted that profit margin between wholesale and retail is huge in items such as apples, bananas, gram pulse, mash, masoor, tomatoes, and onions.

A statement issued after the NPMC meeting presided over by Special Secretary Finance on Monday mentioned identical items that were referred in Aug 21 meeting that "profit margin between wholesale and retail is huge in items like apples, bananas, gram pulse, mash pulse, masoor pulse, tomatoes and onions".

On Monday, the NPMC meeting was also informed about the variations in price level in the provinces, and the ICT, and details of profit margin between wholesale and retail level was shared by the Pakistan Bureau of Statistics (PBS) especially the provincial profit margin.

The meeting also wanted the PBS to share the detail of provincial markets for taking action against profiteers.

The inter-provincial coordination (IPC) representatives were asked to coordinate in this matter, so that the consumers of each province may get relief to pay minimum margin.

The meeting decided that all provincial governments and the ICT administration should control the undue price hike of essential items, while the Ministry of National Food Security and Research was directed to monitor the supply and demand of pulses and vegetables including tomatoes, potatoes and onion, and take necessary measures such as timely import for the smooth availability of these items.

The NPMC meeting also asked the provincial governments to provide information with regards to damages of minor and major crops by the recent flood to the Ministry of National Food Security and Research for timely response to any shortages and directed ministries of Industries and Production and Commerce to take swift actions and provide necessary support to facilitate the import of essential food items especially sugar and wheat, whose prices remain untamed.

The provincial governments and the Islamabad Capital Territory have maintained that price monitoring was done by them regularly, and action against hoarding and undue profiteering.

They added that governments in consultation with all the stakeholders were taking measures to control the general price level of daily use items at the federal, provincial, and district levels.

The meeting was informed about the CPI inflation year-on-year in August 2020, and noted that average inflation during July-August fiscal year 2021 was showing declining trend, and recorded at 8.7 percent as compared to 9.4 percent same period last year.

Government in consultation with all the stakeholders is proactively taking measures to control the general price level of daily use items at the country level.

The meeting wanted the provinces to act against hoarding, adulteration, smuggling, profiteering, so as to ensure uninterrupted supply of daily use items to the masses at lower prices.

The Utility Store Corporation was also instructed to ensure strict control on the quality of daily use items at all their outlets.

The meeting was attended by representatives from the provincial governments, the Islamabad Capital Territory, ministries of Industries, Commerce, Law and Justice, Planning, Development and Special Initiatives, National Food Security and Research, Inter-Provincial Coordination (IPC) along with the Competition Commission of Pakistan, and the Pakistan Bureau of Statistics.

Copyright Business Recorder, 2020