KARACHI, Sept 12: The price of 16-kg tin of ghee and cooking oil has been on the decline due to falling palm oil rates in the world markets, while the price of Atta No. 2.5 has surged owing to rising wheat rates.

Meanwhile, the Punjab government and Pakistan Vanaspati Manufacturers Association (PVMA) had mutually agreed to fix the one-kg ghee pouch rate at Rs118 as compared to Rs130 a month back.

However, the branded ghee and cooking oil producers have yet to come out with price cuts despite falling palm oil prices in Malaysia and Indonesia.

In Punjab, the 16-kg tin of ghee and cooking oil is being sold at Rs1,880-1,900 as against Rs1,950 a month back. In the end of July, it was selling at Rs2,100.

In Karachi, the rate of 16-kg tin is Rs1,780 as compared to Rs1,820 a month back. In late July it was available at Rs1,900.

PVMA chairman Abdul Wahid told Dawn from Islamabad that the palm oil rate had fallen to $795 per ton, from $1,000 a month back and $1,200 per ton in late July.

The local rate of palm oil has dropped to Rs3,600 per maund (37.25 kg) from Rs4,200 a month back, he added.

The rate of 16-kg ghee and cooking oil tin would have fallen more if the rupee would have not lost its value against the dollar, he said.

The branded ghee packers despite members of the PVMA have not been passing on the benefit of falling palm oil rates to consumers and even they have eaten up price difference when palm oil prices had dropped in March this year.

“Being PVMA chairman I have only been asking these packers to reduce their rates, but I cannot force them to do so as they follow their own pricing policy,” Mr Wahid said.

In Ramazan, many of the branded packers had come out with some kind of discount and consumer promotion gift schemes, but the rate on the tin has not been changed.

Surprisingly, the government didn’t bother to ask the branded packers to as to why they had not been brought down prices despite a massive reduction in palm oil rates in March and in the last one and a half months.

Branded ghee and cooking oil prices have surged substantially in the last two years. In Sept 2006, five-kg Dalda ghee tin was priced at Rs395 as compared to Rs775 now.

Ghee and cooking oil producers also export an estimated 15,000 tons comprising 90 per cent ghee to Afghanistan every month at a price of $1,200 per ton.

The country’s annual consumption stands at 3.2 million tons in which the oil share ranges between 35-40 per cent and that of ghee at 65-70 per cent respectively.

The PVMA chairman disclosed that the Pakistan Standard Quality Control Authority (PSQCA) had also started inspection of the imported palm oil despite the fact it had been checked at the port.

“The PSQCA move has been creating hindrance in smooth clearance at a time when demand of ghee and cooking oil soars during the holy month,” he added.

Wheat, flour rates