The Punjab government has surrendered before the interests of feudal and stopped taking action against artificial price hike of potatoes.
The Provincial Minister for Food & Chairman Cabinet Price Control Committee Bilal Yasin addressing a press conference here at 90 Shahrah-e-Qauid-e-Azam said that government is taking strict action against profiteering on potatoes hoarding but farmers associations (so-called feudals’ bodies) are forcing the government against interfering in market mechanism as it will dishearten the farmers. The farmers will not sow potatoes in next season if prices were forcibly controlled by the government, the minister argued on behalf of farmers’ representatives’ association.
Despite several measures taken by the federal as well as the provincial governments, the rates of potatoes are sticking to the level of Rs60-70 per kg in open market while the whole Sunday bazaars are not selling this item except sweet potato at Rs45 per kg. Sunday bazaars vendors said that market committee rate was not viable for them so they refused to sell potatoes. However, sale of sweet potatoes is feasible for them.
It is to be noted that the Federal Board of Revenue (FBR) has abolished sales tax, customs duty and withholding tax on the import of potatoes and imposed 25 percent regulatory duty on its export in line with the decision of the Economic Co-ordination Committee (ECC) of the Cabinet.
The FBR has exempted 17 percent sales tax, 5 percent withholding tax and customs duty on the import of potatoes. The ECC had considered a summary of the Ministry of National Food Security and Research on creation of potatoes artificial price hike in the market. The ECC was informed that hoarding and profiteering led to increase in the potatoes price locally.
The ECC on the recommendation of Minister for National Food Security and Research decided to impose 25pc regulatory duty on export of potato with effect from May 5, 2014. It was further decided that there will be zero duty and levy on import of potato from May 5 till July 31, 2014 and the measure will help in bringing potato prices at rational level in the market before and during the month of Ramazan 2014.
But all measures of the federal government along with the checking of monitoring teams of provincial governments seem to be futile as no respite was seen in prices of potatoes neither in open market nor in Sunday Bazaars. Though vendors have pasted rate list of veggies with potatoes rate of Rs54-56 per kg but they are selling the item not less than Rs60 per kg.
It seems that there is no price regulatory body and mechanism of the Punjab government to control prices of essential eatable commodities that are completely manipulated by traders, hoarders and profiteers.
Experts said that Pakistan produces 3.78 million tons potatoes against the annual domestic consumption of about 1.8 million tons. The prices of potato peak up in October and start declining from Dec when the new crop from Punjab is available in the market. The lowest prices are observed from January-March.
They pointed out that there is now no potato left with the farmers as the stockists and hoarders picked up the whole crop. They are selling vegetables at the unaffordable price of Rs 60-70 per kilogram without any check or hindrance.
Meanwhile, the Provincial Minister Bilal Yasin said that provision of quality essential items to the people at cheaper rates in abundance is top priority of the government. He said that edible items are available in Sunday bazaars and Sahulat bazaars in abundance.
Replying to a question, Bilal Yasin said that price of potato is being focused so that its price should be brought at reasonable level before Ramzan-ul-Mubarrak. He said that district administration all over the province is active against hoarders.
Provincial Minister said that there is wheat procurement season and the focus of Food Department is to achieve the wheat target.
Source:- nation.com.pk
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