KARACHI, July 21: As the cost of living is set to rise after historic increase in oil prices, the bread makers are the first to add to the consumers’ plight by pushing the rates up by Rs1 to Rs4 on different brands.

After making an increase of same amount on June 7 in prices of bread, rusk, fruit bun, paratha, puri, burger bun, etc, the bread makers, who are also leading flour millers, have decided to raise the prices second time from July 23.

Earlier they had increased the rates of bread from Re1 to Rs4 in the middle of December 2007.

With continuous increase in prices, the bread makers have not increased the weight of the bread and even some of them are providing substandard quality.

Former chairman of Pakistan Flour Mills Association Shaikh Akhtar Hussain defended the price hike by citing reasons prevailing during last December for the price hike like increase in the rate of wheat, utility bills, sugar, cooking oil, packaging material and the distribution cost.

He said that the price of maida (superfine flour) has surged to Rs2,450-2,550 per 80 kg bag from Rs2,200 in the last 15 days. This increase is the result of the impact of rising prices of various items in the past. However, the impact of new big raise in petrol and diesel prices has not yet been passed on the consumers, he added.

Mr. Akhtar said that the bread makers in a meeting last week decided not to increase the rate for another two months.

Karachi Wholesalers’ Grocers Association chairman Anis Majeed said that the highest-ever rise in petrol and diesel prices on July 20 will at least make an impact of Rs2 per kg on essential commodities like pulses, sugar, rice, tea etc. He said that the Goods Transporters Association had issued the rate list for 40-ft container trailers showing an increase of Rs100 to Rs2,500 depending on the destination from Port Qasim and the Karachi Port to various points in the city. The new rates had been made effective from July 14, 2008.

Mr. Anis apprehended that after a fresh price hike in petroleum products the transporters would further enhance the rates.

Karachi Retail Grocers Group general secretary Mohammad Farid Qureishi said that the prices of commodities would rise by at least 15-20 per cent in coming days when the transporters will start charging new rates.

The Alliance of Market Associations has decided to observe a shutdown on Friday to protest against the increase in petrol and gas prices. Alliance chairman Atiq Mir said that the association had called a meeting of all the trade and market associations on Wednesday to finalise the strategy for Friday’s strike.

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