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Call for steps to stabilise prices of commodities

ISLAMABAD: The National Price Monitoring Committee (NPMC) on Friday asked the Ministry of National Food Security & Research (MNFSR) and the provinces to take proactive measures to control the general price level of daily-use items at federal, provincial and district levels.

A meeting of the NPMC, which was presided over by Finance Secretary Naveed Kamran Baloch, also asked the MNFSR to consult the provincial governments, remain vigilant to control wheat, flour and sugar prices, and take immediate necessary measures to ensure provision of these items at affordable prices.

The meeting called upon the provincial governments to provide support to market committees in collaboration with the district administration to play proactive role by removing price disparity among the provinces and also ensure smooth supply of essential items.

National monitoring body discusses price disparity among provinces

The meeting was attended by the representatives of provincial governments, Islamabad Capital Territory, ministries of industries, commerce, law and justice, planning, development and special initiatives, national food security and research and inter-provincial coordination (IPC), Competition Commission of Pakistan (CCP), Cabinet Division and Pakistan Bureau of Statistics.

It discussed the price trend of essential food items. It was noted that Consumer Price Index (CPI) inflation year-on-year was recorded at 9.3pc in July 2020. Sensitive Price Indicator (SPI), which monitors the price movement of 51 essential items on a weekly basis, recorded a decline of 0.22pc for the week ending Aug 13. This was the second consecutive decline in SPI during August this year.

The provincial governments and the ICT claimed that they were regularly monitoring the prices and taking strict action against hoarding and undue profiteering.

The committee also discussed the price movement of essential items in the provinces and ICT and observed variations in the price level.

The Utility Stores Corporation informed the meeting that the USC was procuring stock of commodities (pulses/rice) through open competitive bidding. The tender committee at the time of opening of bids/tenders examines the samples thoroughly so as to ensure the selection of good quality product as per prescribed specifications. Hence the commodities procured are strictly monitored and checked randomly to ensure provision of quality items.

Moreover, surprise inspections are carried out to examine the stocks at warehouses. However, the meeting stressed the need for strengthening the quality control mechanism of essential items at Utility Stores.

It was noted that profit margin between wholesale and retail prices was huge in items such as apples, bananas, gram pulse, lentils, tomatoes and onions. The meeting asked the provincial governments to check the undue profit margin.

The Bureau of Statistics was directed to share the province-wise profit margin between wholesalers and retailers so that the provinces could take prompt action against anti-market practices.

The Competition Commission of Pakistan gave a detailed presentation on the structure of sugar and poultry industries and their existing price mechanism. The committee directed the CCP to provide an action plan with concrete recommendations to check anti-market practices in these sectors.

The participants of the meeting agreed that there was a dire need for action against hoarding, adulteration, smuggling and over-due profiteering to ensure uninterrupted supply of daily-use items to the masses at lower prices with the support of the federal government for price stability in the country.

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