Pakistan Economy - News & Updates - Archive

[Neo]

Power generation using wind energy: LoIs issued to 93 local, foreign companies ​

ISLAMABAD (November 03 2007): Government has issued Letters of Intent (LoIs) to 93 local and foreign companies for power generation using wind energy to meet the country's growing power demand, Business Recorder learnt on Friday.

Sources said five investors have applied for licences to set up such facilities at Gharo-Keti Bandar in Sindh where the Alternative Energy Development Board (AEDB) had identified the potential of around 50,000 MW.

The companies, which were issued licences, include Green Tower, New Park Energy, Tenega, Win Power and Miligro while licences of Zaphyr Power, Zolyu Energy and Beacon Energy are under process.

The tariff of two companies, Green Tower and Win power, has been approved while that of Beacon Energy and Zolu Energy is under process. Sources said the land has been allotted to 15 companies so that each of them could establish plants for 50 mega watts.

They added the major thrust of AEDB is to assist investors for meeting increasing power demand. The country has been facing power crisis as galloping demand-supply gap had resulted in frequent breakdown, hurting not only domestic consumers but also the industry.

Experts say the country needs more power generation to avoid load-shedding in peak hours and to ensure smooth supply to both consumers and the industry. Sources said the generation potential is based on 3-year wind data at Gharo-Keti Bandar gathered by the Meteorological Department.

The AEDB, after conducting an extensive analysis of the data, got four 50-metre high wind measuring masts installed by private sector. The AEDB and Sindh government are working in close co-ordination for the identification and allotment of land in the wind corridor.

A recent official census on electricity highlighted that after household it was the industrial sector, which needed about 32 percent electricity of the total production.

The survey said that household sector was the largest consumer of electricity with 43.7 percent, followed by industry 32 percent, commercial 6.7 percent, agricultural 11.3 percent, public lighting 0.5 percent, and bulk supply and others 5.8 percent.

Experts believe resorting to non-traditional renewable sources like the wind is really a way out to keep the industrial wheel moving and to compete in the global market after full implementation of WTO regime.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Rs 200 billion earmarked for agriculture credits ​

ISLAMABAD (November 03 2007): Agriculture credit disbursements target of Rs 200 billion has been fixed for 2007-08 financial year, which is 25 percent and 22.62 percent, respectively, higher than the last year's target and actual disbursement, official sources told Business Recorder here on Friday.

Of the Rs 200 billion, Rs 96.50 billion is to be disbursed by five big commercial banks, National Bank, Habib Bank, Muslim Commercial Bank, United Bank, and Allied Bank; Rs 60 billion by Zarai Taraqiati Bank Ltd (ZTBL); Rs 8 billion by Punjab Provincial Cooperative Bank Ltd, and Rs 35.50 billion by domestic private commercial banks, they said.

According to them, province- and sector-wise targets are 78 percent, 14 percent, 6 percent, 1.5 percent and 0.5 percent for Punjab, Sindh, NWFP, Balochistan and AJK and Northern Areas, respectively, whereas the farm sector, orchards, livestock, poultry, fisheries and others are required to get 76 percent, 4 percent, 11 percent, 4 percent, 3 percent and 2 percent, respectively.

They said credit requirements of the farming community have been increasing over the years mainly due to rise in the use of fertilisers, pesticides and mechanisation. In order to cope with the increasing demand for agricultural credit, institutional credit to farmers is being provided through Zarai Taraqiati Bank Limited, Punjab Provincial Cooperative Bank Limited, five big commercial banks, and domestic private banks.

Sources said the targets are totally voluntary and indicative in nature as the mandatory targets allocations policy has been totally phased out keeping in view the trend of Financial Year 2006, and the targets for the five big commercial banks have also been made voluntary and indicative in live with domestic private the commercial banks.

They said the elimination of mandatory credit targets coupled with active involvement of commercial banks in agri-finance is a major milestone achieved towards mainstreaming of agri-finance in the country's financial system.

The flow of necessary funding to the sector will now be ensured through conducive policy and regulatory environment, policy advocacy and promotional initiatives and monitoring of agri-disbursements and portfolio build-up plans, they added.

They said the credit is advanced to farmers to supplement their resources for purchase of seeds, fertiliser, and pesticides and for purchase of agricultural machinery etc. Government policy with regard to agricultural credit will safeguard the interest of small/medium farmers by extending credit to them on easy terms and conditions as well as to protect them in case of any natural hazards and calamities.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Middle East group agrees to provide gas for LNG Terminal ​

ISLAMABAD (November 03 2007): A Middle East Group has agreed to supply 1.5 million tonnes of gas per annum for the LNG Terminal at Port Qasim. JJVL's CEO, Iqbal Z Ahmad told a private TV channel that it was initially intended to buy LNG from the spot market for the $160 million project, but now following this assurance of the gas supply the necessary agreement would be finalised within one month.

The Middle East Group under the agreement would supply gas for 15 years, which has the provision of further extension of the period by 10 years or enhancement in the quantum of supply.

Presently, the jetty was being made abroad and the terminal would be completed by March 2008, facilitating the handling of 3.5 million tonnes of LNG imports annually. Iqbal Z Ahmad said that the talks with Sui Southern Gas Company (SSGC) were presently underway for the gas supply agreement.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Pakistan's foreign exchange reserves reach $16.3542 billion ​

KARACHI (November 03 2007): Country's liquid foreign reserves have reached new peak of $16.3542 billion during the week ended on October 27. The foreign reserves, held by the State Bank of Pakistan, stood at $14.1192 billion, while the foreign reserves held by banks stood at $2.235 billion.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Over 0.4 million new job opportunities to be created in fiscal year 2007 ​

KARACHI (November 03 2007): More than 400,000 new job opportunities will be created in current fiscal year in agriculture, small and medium enterprises, housing and construction, information and communication technology and export sectors with the investment of Rs 435 billion, approximately.

Officials in labour department told Business Recorder here on Friday that Islamabad was seriously considering to invest large amount in said sectors, aimed to create new job opportunities across country, which would be almost 60 percent higher than the allocation made in the preceding years.

"These sectors have potential for a fairly diversified employment generation through direct and indirect ways and hopefully they would be identified as 'labour incentive sectors' for workers, they hoped.

According to Labour Force Surveys (LFSs), around 4.94 million additional work opportunities have been created in the last two years by government, intended to reduce the upward trend in unemployment rate, which skyrocketed in last few years.

Although unemployment rate has declined and stood at 6.2 percent, which was 8.3 percent during last two years, government is adopting fresh strategies to reduce unemployment rate further in current FY, they added.

Officials said that Medium Term Development Framework (MTDF) 2005-10 and Poverty Reduction Strategy Paper (PRSP) had been prepared in line with these developments, which would create a sustainable economic system besides reducing the poverty across country and hoped that these strategies would achieve the Millennium Development Goals (MDGs) by 2015.

Moreover, they hope that it would help enhance competitiveness in these sectors, besides maximising the knowledge and skills of workers, which would directly, be effective on the Total Factor Productivity (TFP).

The Labour Force Participation Rate (LFPR) is being increased in both genders in urban and rural areas, respectively. Despite the fact that females are helping their families out of poverty-circle and stabilising them economically, they said that Labour Force Participation Rate (LFPR) in females were phenomenal in last few years, which was about one fourth in rural areas and around one out of every ten women were active in the labour market, they informed.

It may be mentioned that unemployment rate had shot up to 33 percent of overall population, which was around 45 million people living below poverty line because of unemployment, however, 70 percent of them was young blood and living in rural areas, sources revealed as per independent survey report.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Peshawar motorway to promote economic activities: Prime Minister ​

ISLAMABAD (November 03 2007): Prime Minister Shaukat Aziz said the newly inaugurated Islamabad-Peshawar Motorway would be a milestone in promoting trade and economic activities in and around the areas. The M-1 motorway would greatly facilitate the people besides cutting the travelling time betweean Islamabad and Peshawar, he said.

The Prime Minister was talking to a delegation of MQM comprising of Minister for Communication, Muhammad Shamim Siddique and Minister for Housing and Works, Iqbal Muhammad Ali Khan, who called on him here on Friday.

He appreciated the role of the ministry of communications particularly the National Highway Authority (NHA) for their efforts in developing and improving the inter-city road links. He said the government is committed to provide better housing facilities to all and is making all out efforts in this regard. The Prime Minister said the government is planning to open new sectors in Islamabad and elsewhere, so that the prices of land could be checked and made affordable for the general public.

He said PML and its allies, including PML (F), MQM, PPP (Sherpao) and BNP Awami would contest the upcoming general election on one platform and expressed confidence that people would vote for them as they have strong candidates, quality programme and good governance to serve the people for the next term. He said the government is committed to facilitate free, fair and transparent elections, in which foreign observers as well as international media are invited to monitor the election process.

The upcoming election would clearly demonstrate that PML and its coalition partners represent the most viable option for Pakistan towards continued growth and development, which would ensure political stability in the country.

The Prime Minister said code of conduct circulated by the Election Commission of Pakistan and the security code distributed by the interior ministry would help ensure peaceful environment for political activities during the general elections.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

'Investment Division may help enhance FDI targets' ​

ISLAMABAD (November 02 2007): The Board of Investment (BOI), which has been made Investment Division, would make policy decisions more efficiently as the Division is having access to the highest level of policy making, a BOI official said on Thursday.

According to the official, this has been done to remove operational snags, as per the rules of business, besides simplifying the procedure for investment. Previously, the BOI could not independently move summaries/proposals for the approval of the prime minister and the ECC on certain issues.

The decision of the prime minister to make BOI Investment Division is in line with the reorganisation approved for BOI and make it similar to the Economic Affairs Division (EAD); which is a multilateral and bilateral debt and grant facilitation agency of the government.

The Investment Division will promote investment, domestic as well as foreign, which incidentally during FY07 has been $8.4 billion, compared to a meagre $322 million in FY02. During FY02, investment as percentage of GDP was 14 percent, which has now increased to 23.9 percent of GDP in FY07. With the creation of Investment Division, FDI targets are likely to be enhanced.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

Law and order situation halts exploration activity ​

ISLAMABAD (November 03 2007): As a result of the worsening law and order situation, seismic and exploration activities in NWFP have come to a halt. This has undermined government efforts to expedite exploration activities in the country's northern regions for increasing indigenous share in oil and gas production.

The security situation in NWFP is so grave that even the Oil and Gas Development Company (OGDC), a public sector company, had to suspend its seismic and exploration activities at Maila field in Kohat district.

Sources said that OGDC's foreign contractor for carrying out seismic activities and drilling at Maila field has pulled out its crew, leaving the contract in force majeure. OGDC officials claim that they are now shifting their own rig to some other field to carry on exploration work at Maila block.

Tullo, Pakistan, another exploration company, has also met the same fate from its foreign contractor. On security concerns, its contractor called back the rig and seismic crew and cancelled the contract for seismic and exploration work in Kohat district.

MOL, a Hungarian firm, had conveyed in writing to Director-General, Petroleum Concessions (DG PC) some time back that due to security reasons it was finding it difficult to carry out exploration activities at Tal block in Kohat district of NWFP.

OGDC, MOL and Tullo Pakistan have taken very bold steps and opted for drilling in hard areas of NWFP which demand more money and long-time drilling. Although some of them hit more than one discovery in that region, from where SNGPL is getting adequate gas for its system to cater the consumers demand.

Since gas produced from northern region is of very high quality, the government wanted to inspire other companies for exploration work. In the new Petroleum policy, exploration and production companies were offered lucrative incentives for achieving the objectives.

President General Pervez Musharraf time and again has sought reports from the Ministry of Petroleum on exploration and production activities in NWFP. But war-like situation in most parts of NWFP have changed the situation from bad to worse. Since exploration and production companies give the rule of security first requirement, as long as NWFP remains turbulent, oil and gas exploration activities may remain suspended. The exploration and production companies give top priority to the safety and security of their personnel and they follow the same rule in any part of the world.

Business Recorder [Pakistan's First Financial Daily]

 

[Neo]

India-Pakistan trade balloons despite restrictive regime ​

Saturday, November 03, 2007

KARACHI: Direct trade between Pakistan and India crossed the $1.5 billion mark in FY 2006-07, up from $850 million in the corresponding period of the previous year, but Indian officials say that the full potential is “yet to be realised.”

Talking to journalists at a briefing here on Friday, Indian Deputy High Commissioner Manpreet Vohra said that the potential for trade between the two countries is much higher but is being restricted by Pakistan which allows only 1,174 items to be imported from India.

Vohra said he receives queries from Pakistani businessmen and trading houses, but on many instances he tells them that despite Indian eagerness to do business, the Pakistan government does not allow them to import from India.

He also informed that the target for setting up Indian banks in Pakistan and Pakistani banks in India was by the end of 2007. “We still have a month or so to go,” he informed, but pointed out that while the Reserve Bank of India had received applications from two Pakistani banks to open branches there, he was unsure whether any Indian banks had applied for the same permission to operate in Pakistan.

Vohra said that the problem with the banks from the Pakistan side in one or two cases was that the ownership of these banks was not “entirely Pakistani” which was one of the conditions of the understanding between the two countries.

However, the senior Indian diplomat warned that Pakistan runs the risk “of irrelevancy” in Indian business circles because of its closed trade policies towards India. He said that very few Indian companies were looking at Pakistan. “The world is the oyster and Indian companies are competing the world over. If Pakistan wants to shut Indian companies out, Pakistan will suffer eventually.

Vohra said that the ultimate sufferers of the restrictive trade policy are the Pakistani businessmen and public since there are many items that India can sell to Pakistan at a fraction of the cost it buys from other countries, but this is not being allowed. “There is no point in artificially shackling trade,” he commented.

Vohra also talked about piracy and said that most Indian movies in Pakistan were pirated and this caused losses to genuine quarters and the illegal operators benefited. He also said that many of the Indian channels that were being aired by cable operators in Pakistan were not being done “in an entirely legal manner.”

The Indian diplomat also said that Pakistani should not be relevant to India “for all the negative reasons.” He urged the Pakistan government to do more to enhance trade. On the issue of the Iran-Pakistan-India gas pipeline, Vohra said that the stumbling block for India was the high transit fee that the Pakistan government was demanding under the agreement. “There is no decision yet, but we are holding talks,” he commented.

India-Pakistan trade balloons despite restrictive regime

 

[Neo]

Handicraft industry to be revived​

KARACHI, Nov 2: The Common Wealth, in collaboration with Sindh Small Industries Corporation (SSIC), has launched a survey to help revive centuries old handicraft industry in the province.

The Common Wealth came to the aid of the handicraft artisans following reports that the traditional handcraft making skill is dying due to lack of financial resources.

Sindh is known in the world for its unique and fine products, like Ajrak printing, Rallis (caps) and wooden lacquer furniture.

Two Common Wealth consultants, Najmul Hussain and Dias Gunasingha, visited handicraft centres in the province in September to inquire about the problems faced by artisans making handicrafts, which reflects the cultural heritage of Sindh.

The consultants along with SSIC officials visited handcraft centres at Hyderabad, Bhit Shah, Hala, Nasarpur, Sukkur, Khairpur, Shikarpur, Larkana and Kashmore. They took special interests in units engaged in Ajrak printing, wooden furniture, various items used in households, women ornaments, ceramic units making decorative tiles and flower vase etc.

The Common Wealth team was informed that the handicraft making units faced acute financial problems and it is feared that not only province will be deprived of its cultural heritage but a large number of artisans, especially women would be out of job.The CW officials were informed that the handicraft units were regarded as the main source of alleviation of poverty in rural areas and their closure would undermine the government efforts to check poverty.

The visitors assured the SSIC officials that on the basis of the survey the CW would provide technical and financial support to save the century’s old professions from extinction. The CW consultants were scheduled to return to the country next month to complete their survey.

They will hold a workshop in Karachi inviting various stakeholders to debate the issue and formulate recommendations for the revival of handicraft industry in the province.

It may be pointed out that presently SSIC does not provide any financing to cottage and handicraft industry due to paucity of funds.

It has submitted Rs500 million financing scheme to the chief minister for approval, which is pending for over a year.

It, however, offers plots in new small industrial estates on 10 per cent payment while the remaining 90 per cent is charged in easy instalments over a period of four years.

The corporation received 8,729 applications for 883 plots available in small industrial estate on Northern Bypass. It has plots of 250 sq yard and 500 sq yards for small and medium enterprises.

About 30 acres area in the estate has been reserved for women to set up cottage industry units. Balloting for the plots is expected soon.

Handicraft industry to be revived -DAWN - Business; November 03, 2007

 

[Neo]

Pak-Russia banking cooperation likely​

ISLAMABAD: Pakistan and Russia are working towards facilitating banks of either country to establish their branches in both territories and an agreement in this regard would be signed soon, sources said. Pakistan has informed the Russian government that National Bank of Pakistan and Askari Bank have shown interest to open their branches in Moscow. Similarly, Russian banks may also establish their network in Pakistan. Islamabad has conveyed this to Moscow and has said that banking relations between the two countries are a must as they cement their economic relationship. Sources said that the Russian Ambassador to Pakistan has conveyed to the government that two countries should enter into an agreement to open the bank branches in the respective countries. Sources also said that the central banks of two countries are working on the agreement that would enable the banks of two sides to open their branches in each country. Pakistani officials from the Economic Affairs Division have visited Russia to hold talks with their counterparts so that the agreement could be finalised. According to sources, the two countries are also working on a Free Trade agreement (FTA) and the federal cabinet has given the approval in this regard. After the FTA takes place and as trade activities between two countries jump up, the traders of both the countries would need banks operating in both the countries for their financing needs. Officials said that both countries are taking interest in increasing their bilateral trade volume by enhancing cooperation in different sectors and banking sector is one in which they can cement their relations.

Daily Times - Leading News Resource of Pakistan

 

[fatman17]

there seems to be movement on the economic front but unfortunately not on the security or defence related front.

 

[Neo]

Emergency to harm economy: businessmen, economists ​

Sunday, November 04, 2007

KARACHI: The imposition of emergency in Pakistan would result in adversely affecting the economy and inflow of foreign investment. Sharply reacting over the imposition of emergency, the business community said that it would badly affect the country’s economy and inflow of foreign investment would not only come to a halt but result in disinvestment in several areas of trade and industry.

“The emergencies previously imposed in the country had not suspended the constitution in toto but suspended fundamental rights of the people. But this time Gen Musharraf has suspended the entire constitution which can in no way be considered a legal action,” said prominent economist Kaiser Bengali.

The already ailing economy of Pakistan would go backstage once again, Kaiser said, adding that there would be a negative impact on the economy, especially the country’s exports would mostly suffer.

Citing an immediate reaction to the emergency, he said that a group of textile buyers which only arrived in Karachi today (Saturday) to go Faisalabad to negotiate orders for textile items has now decided to go back instead of proceeding to Faisalabad.

The import sector would also badly suffer as all the imports cost would go up due to the possible surcharges by the shipping companies and additional bank charges due to the confirmation of letters of credit ensuring payment to exporters.

“The first and foremost impact on imports would be the confirmation of our letters of credit as all the exporting countries would be asking confirmation of the L/Cs from the bank and the banks would charge additional to confirm the L/Cs,” said Farooq Azam Khwaja, honorary consul of Rwanda and a prominent importer of Jodia Bazaar.

Khwaja said that the banks charges would result in increasing the import cost up to seven and 10 per cent whereas shipping companies would also be asking similar assurances which may result in additional shipping charges. Furthermore, the insurance costs would also increase due to the situation, he said, adding that all such levies would increase the cost of imports resulting in another wave of price hike in the country.

“Whenever emergencies are imposed in the country, it results in price hike, uncertainty prevails and illegal trade flourishes,” Khwaja cited the past example of situation arisen due to the imposition of emergency. He said that the effect of such type of situation has a gradual impact on the economy.

“The country will lose political credibility, as suspending the basic human rights will definitely result in loss of credibility of the country in general and exports in particular,” commented economist and prominent industrialists Eng M A Jabbar. He said that all the business sectors of Pakistan including exports, industry, agriculture and services are vulnerable and such a step of imposition of emergency would obviously have a disastrous impact on our economy, Eng Jabbar added. How can we expect inflow of foreign investment in the country, he questioned.

Exporters were highly worried over the state of emergency in the country and have even said that it would be better if the government withdrew R&D from the exports sector, but should not impose emergency which would result in total disaster of our external trade.

“This was the time when we were in the midst of negotiating orders and collection for 2008-09 season with our buyers but the emergency in the country would destroy our exports,” said a former chairman of the Pakistan Leather Garments Manufacturers and Exporters Association, Fawad Ijaz Khan.

Buyers would now be forced to go somewhere else to ensure timely delivery of their orders and the country would lose precious foreign exchange, Fawad added.

Economists were of the view that the financing of the country’s mega projects would also be affected whereas all large scale manufacturing sector, especially automobile, cement, construction and real estate would be badly affected resulting in massive unemployment in the country.

Emergency to harm economy: businessmen, economists

 

[Neo]

Businessmen give mixed response ​

Sunday, November 04, 2007

KARACHI: Business leaders across the country were shaken by the sudden emergency that has been announced after weeks of speculations but surprisingly some were happy with the step and remarked that this should have been done a long time ago to control the deteriorating law and order situation.

Zubair Tufail, Vice President of Federation of Pakistan Chambers of Commerce and Industry said that with the lawlessness that had been witnessed in Pakistan during the past few months, this was a very good step which the government should have taken months ago.

“Look at what is going on in Swat and other parts of Pakistan. I think the government had no option but to impose an emergency and this was the only way to control the deteriorating situation,” he said. According to him, while the businesses might have a short term affect, over the long run it would prove to be good for the businesses and now laws would be implemented even if it had to be by force.

Zubyr Soomro, President Overseas Investors Chamber of Commerce and Industry expressed concern over the news and said that as a leader of an international investors’ chamber, this was a heavy blow to him and Pakistan was going to suffer greatly on the world map. Shamim Ahmed Shamsi, President Karachi Chamber of Commerce and Industry said that in the short run the businesses were not at a threat as the administration policies were to remain intact according to his information.

Shahid Hasan Sheikh, President Lahore Chamber of Commerce and Industry viewed that the emergency would bring discontinuity to the businesses in the country and it was a bad news for him. “After having a clear vision of what the emergency specifies, it would be easier to say how far it affects the businesses and government affairs but right now after having spoken to several other businessmen based in Lahore, there is an absolute chaos here,” he remarked.

Masood Naqi Chairman Korangi Association of Trade and Industry said that businesses were not to be affected directly but the media and lawyers in the country would face the maximum brunt of the state of affairs. “Pakistan has been unstable for the past six months and after the emergency, it is likely to see some stability now. I think, the future is bright for businessmen as eventually the world will see that matters are falling into place again and they would find Pakistan a much better place for their investments.”

Rubina Rasheed, President National Women Forum said that internationally Pakistan was worse off, nevertheless there would be continuity in businesses now and the momentum at which trade was progressing in the country was not likely to be disturbed. Siraj Kassim Teli, Patron in Chief of SITE Association also voiced that there was confusion among people as the rules of the emergency were unclear and once the conditions were highlighted, only then the plight of the businessmen would be known. “This is a power struggle and the country would be affected adversely,” he opined.

Zubair Motiwala, former President Karachi Chamber of Commerce and Industry said that if this was the panacea for the sufferings of the country, then it was a belated step taken by the government. “I must say that it is an end to an era which was full of instability. Until we get established and until we have stability, we will not achieve anything and our politics will continue to directly affect our imports and exports. Yet, I say that we are heading towards a better future as we are likely to progress somewhere at least as the earlier four months were wasted.”

Source in Islamabad and Rawalpindi informed The News that there was no major reaction from the business community as they all were waiting for General Musharraf to address the nation on the issue of emergency. “The only reaction that is feared is from the lawyers that may eventually affect the businesses and normal routine as they are the most affected ones,” informed an official on the condition of anonymity.

Businessmen give mixed response

 

[Neo]

SPI records 8.87pc increase in commodities’ prices ​

Sunday, November 04, 2007

ISLAMABAD: The Sensitive Price Indicator (SPI) year-on-year of 53 basic commodities for the week ended on November 1, 2007 recorded 8.87 per cent increase as compared to the corresponding week of the last fiscal.

The weekly SPI bulletin released by the Federal Bureau of Statistics (FBS) on Saturday revealed that year-on-year rise in the prices of some necessities and kitchen items was exorbitant. These items were wheat and wheat flour, vegetable, ghee, rice, fresh milk, pulses, powdered milk, cooking oil and fire wood.

Data collected for about 53 items for the SPI bulletin from 17 centres revealed that 11 items recorded an increase and 12 items a tendency of decline, while prices of 30 items remained unchanged. However, further analysis of the data revealed that year on year basis; nine items were dearer by double digits.

These include red chillies whose price went up by 50 per cent, mustard oil 48 per cent, vegetable ghee loose 47 per cent, masoor pulse 37 per cent, farm egg 34 per cent, wheat 27 per cent, wheat flour 24 per cent, firewood 13 per cent and fresh milk price went up by 12 per cent.

In a week span of time, among these items the prices of red chillies shot up by 2.8 per cent, vegetable ghee loose 2.5 per cent, masoor pulse 1.94 per cent, mustard oil 1.61 per cent, egg (farm) 1.34 per cent and wheat flour prices increased by 0.54 per cent, over previous week.

The FBS figures further revealed that though prices of 30 items posted no change during the week, yet compared to the corresponding week of last year, several items are costly now. For example rice basmati broken is dearer by 58 per cent, vegetable ghee (canister) 29 per cent, cooking oil (canister) 29 per cent, powdered milk 26 per cent, curd 13 per cent and price of plain bread went up by 11 per cent.

The bulletin further indicates that though the prices of 12 items decreased, yet compared to the prices of corresponding week of last year, items which recorded increase in their prices were rice Irri-6 which is dearer by 47 per cent and tomatoes prices up by 28pc.

SPI records 8.87pc increase in commodities’ prices