Retailers make profit despite drop in wholesale rates
By Aamir Shafaat Khan
2025-02-16
KARACHI: As Ramazan approaches inless than15 days, the dropininternational prices has led to lower rates for some varieties of pulses in both wholesale and retail markets.
There is also a significant difference between wholesale and retail prices. For instance, the retail price of gram pulse has fallen to Rs300-360 per kg from Rs340-400 over the last month. However, the wholesale price of gram pulse is Rs260-270 per kg.
The price of mash has decreased to Rs400-480 from Rs440-500 per kg, while its wholesale rate is Rs350-360. The retail prices of masoor and moong have remained unchanged at Rs280-320 and Rs380-420 per kg, respectively, during the same period. Masoor and moongwholesale prices are Rs250-255 and Rs330-360 per kg, respectively.
Some retailers claimed that the price of black gram (Kaala Chana) had dropped by Rs100 to Rs300 per kg, while its wholesale price is Rs250. The retail price of white gram (Kabuli Chana) has remained at Rs350-380 per kg, while its wholesale price is Rs300-340. There has been no change in the price of Basin, which remains at Rs280-320 per kg depending on the quality, with its wholesale rate in Jodia Bazaar at Rs252 per kg.
Retail sugar prices have risen to Rs150-160 per kg from Rs140-150 over the past month, while its wholesale rate in Karachi is Rs142 per kg.
`Retail prices are very high compared to the wholesale rates, which is unjustified,` said Rauf Ibrahmi, chairman of the Karachi Wholesalers Grocers Association (KWGA), urging authorities toaddressthe signiñcantprice disparity between wholesale and retail prices.
In the past two months, the international price of black gram has fallen to $680 from $850 per tonne, followed by mash dropping to $900 from $1,200 pertonne, masoor to $680 from $750 per tonne and small gram (Sabut Chana) falling to $675 from $752 per tonne.
The price of large gram whole has dropped to $825 from $950 per tonne.
Only moong prices in the world marl(et have increased, rising to $900 from $750 per tonne.
Mr Ibrahmi said India`s limited buying of various pulses due to good crops had caused the price drop in the world market.
The monthly consumption of black gram is 83,000 tonnes, but it rises to over 200,000 tonnes during Ramazan in Pakistan. Similarly, the monthly demand for sugar is 550,000 tonnes but doubles to 1.1m tonnes in Ramazan.
Mr Ibrahmi added that retailers and consumers have already started preparing `ration packages` for the deserving, which include flour, black gram, sugar, tea, and white gram, ahead of Ramazan.
He also noted that the monthly rice demand increases by 20-25pc during Ramazan, as many people prefer Biryani for Iftar. He said the highest-ever wholesale price of Kernel Basmati (exportquality) is Rs330 per l
Mr Ibrahmi expressed dissatisfaction with the high profiteering by bakery item makers and tandoor operators, despite a significant drop in various flour varieties over the past year. He said that fine flour for Tandoori Naan and Flour No 2.5 for Chapati have a wholesale rate of Rs84 and Rs82 per kg, respectively.
According to the Consumer Price Index (CPI) ending Feb 13, 2025, the retail price of a 10kg wheat bag and 11(g of fine flour is Rs780 and Rs109, compared to Rs1,210 and Rs154 on Feb 15, 2024. The 20kg wheat flour price ranges between Rs1,800 and Rs2,100, compared to Rs2,600-2,900 in the same period. Based on the substantial drop in flour prices, Mr Ibrahmi said that a Chapati and Tandoor Roti should not cost more than Rs10 and Rs15 per piece, respectively.