ISLAMABAD
What to talk about enhancing the country’s GDP growth to seven percent, the Finance Minister Senator Ishaq Dar’s efforts remained fruitless even to bring down price of basic food commodity (Potatoes) in four months.
Though the Finance Minister has taken several actions to reduce the potatoes prices, but all went vain. Ishaq Dar, who has a good reputation to reduce the dollar value, seems fail to beat the hoarders in potatoes case. Commodity is still trading at around Rs 70 per kg in the country, which is highest among the vegetables.
Finance Minister in April 2014 had taken action against the soaring potatoes price and directed to bring down the price to Rs 30 per kg. Thereafter, the government had not only allowed the duty free import of potatoes to bring down but it also imported 300,000 metric tones of commodity at zero duties. However, the government failed to bring down the potatoes price to Rs 30 per kg.
Sources told that the proposal to import 200,000 metric tons of potatoes was presented by the Ministry of National Food and Security Research’s (MNFSR) in April 2014 to the Economic Co-ordination Committee (ECC) of the Cabinet on the grounds that without imports the hoarders would be encouraged to raise prices. The Ministry sought permission for import of potatoes at zero duties and levies for a period of two months, (May to July 2014), arguing that it would help bring down the prices during the month of Ramadan. However, the government did not get the desired results. Therefore, following the previous move, the MNFSR on 16th July 2014 once against asked the ECC to further allow importing 100,000 metric tons of potatoes at zero duties; this extension will continue till November 15, 2014 when the new crop is expected.
The government has not only failed to reduce the price but it also lost its revenue due to importing potatoes at zero duties. Even, the Federal Board of Revenue (FBR) did not support the proposal on the grounds that it would have adverse revenue implications.
Due to the government’s failure, the helpless consumers are left with no other option than to purchase commodity at high prices manipulated by hoarders and middlemen. Sources in MNFSR said that during 2013-14 the area under potato crop decreased by 10.71percent compared to last year due to non-availability of sufficient potato seed at the time of sowing and damage by heavy frost and premature harvesting. Therefore, commodity price is increased.
As Finance Minister is out of the country to perform Umra, The Nation has tried to contact Rana Asad Amin spokesperson of the Finance Ministry to take his comment on the issue but he was not available.