THE Government on Friday increased the price of ghee by Rs30 per kg (15 per cent) being sold at Utility Stores.
The Economic Coordination Committee of the Cabinet (ECC) approved an increase in the price of ghee from Rs170 per kg to Rs200 per kg instead of Rs220 per kg demanded by the Ministry of Industries.
It put on hold until after Eid-ul-Fitr increase in the prices of wheat flour and sugar demanded by the Ministry of Industries and Production and the Utility Stores Corporation (USC).
The prices of cooking oil increased phenomenally during recent months and manufacturers are adamant not to revise them downward despite reports of fall in prices in the international market.
In this backdrop, people expected the Government would take firm and decisive action against profiteers but it opted to increase prices of the commodity being sold through USC outlets.
There is no doubt that the revision was necessitated due to significant price differential as vegetable ghee and cooking oil are being sold between Rs 250 to 300 per kilogram/litre in the open market and understandably the Government or the USC cannot afford to pay so much subsidy on one item.
However, it is also a fact that the wholesale price increase approved by the ECC would encourage manufacturers to increase prices of their products albeit unjustifiably as in our peculiar environment market forces are in the habit of exploiting the situation to their favour on different pretexts.
The ECC acted wisely in postponing the decision on the demand for an increase in prices of wheat flour and sugar by the USC in view of approaching Ramzan-ul-Mubarak when prices of almost all items tend to increase further.
The USC is serving as a platform to safeguard interests of the vulnerable segments of the society and, therefore, there is also need to strengthen its role and expand its outreach.
