KARACHI, Feb 20: The demand for subsidised ghee and cooking oil at the outlets of Utility Stores Corporation is increasing rapidly as their prices are almost half of open market rates.

As there are crowds outside utility stores, public demand is swiftly switching over to one kg subsidised ghee and cooking oil pouch as against the 10 kg flour bag.

Utility stores are offering one kg pouch of ghee and cooking oil at Rs67 while in the market branded ghee and cooking pouch is priced at Rs131 and 134. Last month, one kg pouch was priced Rs123 in the market.

After undergoing a painful experience of buying flour during the last few months, consumers belonging to low-income bracket have now started facing another crisis in the shape of short supply of ghee and cooking oil at utility stores as seen from queues outside the stores.

The rising price difference is frequently catching up attention of many low-income buyers who cannot afford to have quality branded edible oil at high prices.

The utility stores all over the country are now getting 20,000 tons monthly quota to meet the burgeoning consumer demand.

“Even if supply is enhanced even to 100,000 tons of ghee and cooking oil per month, it cannot match the high demand spurt from consumers,” zonal manager (Sindh and Balochistan Zone), USC, Masood Alam Niazi, told Dawn on Wednesday.

It is not the case of demand, which market people think USC is failing to meet, “but actually rising prices of ghee and cooking oil in the market are forcing lower and middle income group people to visit government stores in a larger number,” he said, adding “once prices of edible items come under control, it would help reduce consumers’ rush at stores.”

He said the quality of Rs67 pouch is almost equal to the branded ghee and cooking oil as it being produced by a leading producer.

To a question that people were still making long queues outside stores for 10 kg flour bag at Rs130, he claimed that to some extent, the crowds had declined, as many retailers were also providing 10 kg bag at Rs150 at government-sponsored flour. Last month, the 10 kg bag was available at Rs175.

However, quality-conscious buyers are still refraining to buy utility stores flour. They are buying chakki atta and fine atta at Rs24 per kg and Rs27-28 a kg, respectively, from the market.

In case of pulses, there is also a vast difference in the prices of pulses available in market as compared to pulses available at utility stores.

The USC is offering gram pulse at Rs29, moong at Rs42, masur at Rs68 and mash at Rs57, while in retail market these items are priced at Rs48, Rs55, Rs75 and Rs60 per kg, respectively.

“Because of big difference, consumers’ demand for pulses is slowly rising,” the USC official said.

It has been observed that people standing in long queues do not bother about the quality rather they focus on huge price difference.

Low-income bracket people reach the utility stores much before the arrival of the truck carrying 10 kg flour bag, ghee and cooking oil.

The USC is now providing over 32,000-33,000 bags of 10 kg flour daily to 147 regular and franchise stores in Karachi as compared to 20,000-22,000 bags in January and 8,000-9,000 bags three to four months back.

The government has increased wheat supply to the USC from 50,000 tons to 100,000 tons per month after the arrival of imported wheat.