KARACHI, Oct 28: A substantial drop of 50 per cent in world commodity prices is not likely to trickle down to consumers in Pakistan because of the 22 per cent rupee devaluation against the dollar making imports costlier.

Three months back, the rupee was trading at 67 to a dollar as compared to 82 currently. Earlier this year, the rupee was available at Rs62 to a dollar.

Had the businesses been honest and fair, the fall should have led to at least 20-25 per cent reduction in prices of imported items after absorbing the depreciation cost. However, the local market has not moved to provide relief to the people reeling under price pressure.

“Much now depends on the retailers, who have a bad habit of pushing up the rates instantly on various excuses. They adopt a dilly-dallying tactics in passing on the impact of falling prices at the wholesale levels,” commented a commodity wholesaler.

The C&F price of Canadian masur (whole) has dropped to $900 per ton as compared to $1,400-1,500. However, its local rate, on which the importers sell to the millers/wholesalers, is Rs110 per kg, while masur pulse rate is Rs125 per kg.

Similarly, the Australian gram pulse (whole) rate has fallen to $360 per ton from $740 two months back. Its rate has dropped to Rs40-41 per kg as compared to Rs52-53 earlier.

The rate of mash (whole) arriving from Myanmar has plunged to $525 per ton from $625 and its local rate in the wholesale market has fallen to Rs48 from Rs54 per kg.

Yellow Peas price has dropped to $375 from $600 per ton, while its local rate in wholesale trade has been quoted at Rs32 as compared to Rs44 per kg.

The price of wheat in global markets has declined to $275 per ton from peak $500 per ton but in the local market it sells at Rs2,800 per 100 kg bag as majority of the consumption is based on the local production. The government had imported wheat at the rate of $374-$450 per ton.

The price of sugar in world markets has slipped below $300 per ton from $400 per ton. In the wholesale market, its rate is quoted at Rs35 per kg as compared to Rs36.50 per kg.

Chairman Karachi Wholesale Grocers Association (KWGA), Anis Majeed said that the rates of pulses as reported are those which importers quote to the millers/wholesalers. He said last year, the commodity prices in international markets were double owing to various reasons like shortfall in crop production and the excessive use of commodities in making bio fuels.

The crude oil prices, which dropped sharply to $60 per barrel from the peak of $148 few months back, have made its impact on the price of other items.

The government had imposed a 35 per cent cash margin on import of pulses few months back. If the LC margin restriction would not have been imposed, the prices of pulses would have further fallen.

Owing to the LC margin restriction import of pulses has slowed down. Now the sharp fall in world prices may lure the importers to bring imported pulses, he said.

According to the figures of Federal Bureau of Statistics (FBS), import of pulses had plunged to 80,289 tons ($54 million) in July-Sept, 2008 as compared to 88,262 tons ($52 million) in the same period of 2007. In September alone, pulses import fell sharply to 17,207 tons ($11.6 million) as compared to 38,899 tons ($22.3 million). The August, 2008 imports were recorded at 24,562 tons ($16.5 million). Anis was of the view that the consumers are likely to reap the benefit of falling pulses rate in world markets in coming months as the new shipments will arrive at lower rates.

He said that there was a mild upward trend in rice prices after substantial drop in the last few months in view of lifting of stocks by the exporters and also by the government.

On the contrary, General Secretary Karachi Retail Grocers Group (KRGG), Farid Qureishi said that the impact of falling prices in world markets will not come overnight and will take time.

He said that the masur pulse wholesale rate is Rs130 and not Rs125 per kg. It is selling at Rs140 per kg at the retail stage. The wholesale rate of mung pulse is Rs48 per kg while it is being retailed at Rs55 per kg. Mash pulse’s wholesale rate is Rs70 per kg and it is selling at Rs75 per kg in retail markets.

The retail price of gram pulse (big) is Rs65 per kg as its wholesale price hovers between Rs58-60 per kg. Arhar pulse is available at Rs75 per kg at wholesale market, while it is being sold at Rs80 per kg at retail level.

He said the price of rice at wholesale market has dropped by at least Rs30-40 per kg in the last few months and retailers, he claimed, have passed on the impact to the consumers.

Basmati wholesale price hovers between Rs80-100 per kg while basmati-86 and basmati tota are sold at Rs64-80 per kg and Rs45-50 per kg, respectively. Irri-6 and Irri-9 are available at Rs44 and Rs60 per kg in wholesale market, respectively.

The falling palm oil rates have registered a fresh fall in 16-kg ghee/cooking oil tin to Rs1,460-1,470 on Tuesday from Rs1,500-1,550 on October 15, against 1,780 in September.