With inflation running amuck, the prices all items of daily use are rising with a consistency that does not match the fiscal condition of the common man.
A collection of all the items whose prices have increased in recent times reads like a list of all the items that compose CPI basket of goods. Ghee, which is one of the most utilized item in every household in the country is one of those goods. The retail price of ghee is increasing without any check and per kilo increase has risen to 4 rupees in just couple of months. The Pakistani Vanaspati Manufacturers Association pleads innocence.
According to the Vanaspati association, the price of palm oil has increased in the international market, which is an essential input to the production of ghee. In addition to this, the rise in both electricity prices and government taxes has also heavily contributed to the price hike, claimed by the Pakistani Vanaspati Manufacturers Association.
Given the proportion that food items constitute in the budget of the lower income groups, it would be wise of the government to reduce certain taxes. Reduction of the import duty on palm oil is an idea. We have been doing pretty bad on the inflation front for the past couple of years.
It is imperative for the authorities to soften the blow for the lifeline consumer.