MoI&P proposes increase in prices of five essential commodities at USC

ISLAMABAD: The Ministry of Industries and Production (MoI&P) has proposed increase in prices of five essential commodities at Utility Stores Corporation (USC), sources close to Secretary Industries told Business Recorder.

On February 11, 2020, the Federal Cabinet had directed USC to maintain the prices of five essential commodities till June 30, 2020, i.e. Atta — Rs 800 per 20 kg, sugar — Rs 68 per kg, edible oil — Rs 175 per kg, rice — Rs15 to 20 per kg less than the market pulses — Rs15 to 20 per kg less than the market.

According to sources, USC has stated that due to prevailing market situation, the revision in prices of essential commodities is necessary, in order to keep a reasonable difference with the open market. Therefore, USC has proposed revising subsidized prices of essential commodities.

The sources maintained that USC has proposed the new price of Atta at Rs 860 per 20 kg from current price of Rs 800 per 20 kg. The price in the open market is Rs 860 to 1100 per 20kg bag. The price gap is Rs 60 to 300 per 20kg bag. USC’s proposed price is in accordance with the control price set with the provincial government(s).

USC has also proposed increase in prices of sugar Rs 77 per kg from Rs 68 per kg. The price in the open market is Rs 90 to 100 per kg. The price gap is Rs 22 to 32 per kg.

USC has sought an increase of Rs 10 per kg in edible oil prices from Rs 170 to Rs 180 kg subject to increase in palm oil prices in international market. Market price is Rs 221 to 225/kg. The price gap is Rs 51 to 55 per kg.

The USC has also proposed increase in the prices of rice and pulses but pledged to maintain a difference of Rs 15-20 per kg as compared to market prices.

During the third meeting of the Economic Coordination Committee (ECC) of the Cabinet’s Committee on Utility Stores Corporation, held on July 29, 2020, under the Chairmanship of the Minister for Industries and Production, it was decided that Industries and Production Division will move a summary to ECC of the Cabinet for soliciting approval of the Federal Government to the revision of prices of five (05) essential commodities beyond 30-06-2020, and decide whether to pass on targeted or un-targeted subsidy till ERP and IT infrastructure gets operationalized by USC.

The sources said USC had planned to fully automate its 1,000 outlets by the end of June, 2021.

The MoI&P has also asked ECC to decide as to whether USC may continue to pass on the un-targeted subsidy till ERP and IT infrastructure is operationalized.

Copyright Business Recorder, 2020