KARACHI: A massive price increase in milk-based products and black tea has emerged just two months ahead of Ramazan, while consumers are forced by the manufacturers to pay high prices for products now carrying lesser weight.

The price lists issued by the manufacturers from mid-January 2022 till to date did not mention any reason for the increase in the rates and reduction in weight, Karachi Retail Grocers Group (KRGG) General-Secretary Farid Qureishi told Dawn on Saturday.

He said it was strange that “the government has been silent over the unethical practice by the big manufacturers of reducing the weight of products and keep pushing up the prices.”

He said the weight of confectionery items like biscuits and cakes has also been reduced. For example, a biscuit pack carrying a price of Rs10 now carries four biscuits as compared to six a few months back. Many companies have also suspended the production of biscuit packs carrying a price tag of Rs5.

Tea packers have also pushed up prices

Mr Farid said the weight of toffees has also been slashed while the price is the same or increased.

Tea spike

Mohammad Shoaib Paracha, former chairman Pakistan Tea Association, said black tea prices had jumped by Rs120-270 per kg.

Rising tea prices on the world markets, higher freight costs and the rupee devaluation from May 2021 till to date had pushed up the cost of imports, thus impacting domestic prices.

He said the Kenyan government had also set a minimum price benchmark and advised auctioneers not to sell below it.

As per figures of the Pakistan Bureau of Statistics (PBS), tea imports in IHFY22 stood at 128,379 tonnes ($301 million) as compared to 129,958 tonnes ($286m) in the same period last fiscal year, showing a paltry drop of 1.2pc in quantity and jump in value by 5pc.

The average per tonne price in July-December 2021-22 stood higher at $2,341 per tonne versus $2,199 per tonne in IHFY21.

He said the government has been treating tea as a luxury item. Tea is being produced after blending various imported varieties of tea arriving from different countries, duties and taxes must be uniform and reduced.

He further added that tea is raw material and the 30pc value addition is an anomaly that should be removed. He also highlighted that the government is providing relief in taxes on the import of tea meant for Fata/Pata areas. He urged the government to revisit and withdraw exemptions extended to importers to provide a level playing field.

For example, the new price of Lipton Yellow Tea 190g pack now costs Rs270 as compared to Rs240. The 950g pack is sold at Rs1,250 as compared to Rs980, while the 450g pack is now available at Rs620 as compared to Rs550.

Tapal Danedar Elaichi pack 95g and 190g carry a new price of Rs150 and Rs290 as compared to Rs120 and Rs250.

The 190g and 385g Danedar packs are selling at Rs240 and Rs480 as compared to Rs220 and Rs425.

Powdered milk, cream

Nestle Pakistan Ltd has increased the price of Milk Cream 200ml pack to Rs140 from Rs130. A jump of Rs20 was also witnessed in the price of Olper dairy cream available in 125ml and 200ml packing.

The weight of Nestle Every Powder has been reduced to 850g from 910g while its price had been pushed up to Rs1,150 from Rs950.

The 560g pack, which was launched with 600g size, is now available at Rs700 as compared to Rs550. After reducing weight by 20g to 350g and 250g of Every Day packs are now priced at Rs540 and Rs300 as compared to Rs450 and Rs250 respectively.

The 9g and 15g Every Day Sachet packs are now sold at Rs12 and Rs18 as compared to Rs10 and Rs 15.

A manufacturer of milk-based products, however, did not agree that weight had been reduced. He said prices had been increased due to the impact of general sales tax.

Published in Dawn, February 6th, 2022