https://arab.news/bd9cn
- Traders say freight, labor costs, general sales tax, custom duty have increased prices by 70 percent
- People fearing more price hikes started buying dates before start of Ramadan
KARACHI: Trading has slowed down at Pakistan’s oldest date market that caters for demand during the Muslim fasting month of Ramadan, traders said on Tuesday, as high prices and decreasing purchasing power kept buyers away.
The century old Khajoor Market in Karachi’s Lyari Town is a major source of date supply not only to the city, but to the rest of the South Asian country as well.
More than 90 percent of commercial activities at Khajoor Market depend on Ramadan, but the market has remained subdued this year except for a few days before the start of the holy month, according to traders. They said the prices of various varieties of dates had increased by around 70 percent this year, as compared to 2021.
“The price of Mazafati (Iran-origin) dates has increased to between 12,000 and 13,000 (Pakistani) rupees ($65 to $70) per 40 kilograms. The variety was available for 7,000 to 7,500 rupees per 40 kilograms the previous year,” Sabir Baloch, a wholesaler and president of the date market association, said.
“This variety remains highly sought after during the month of Ramadan.”
The date fruit is considered a quintessential part of iftar, the sunset meal during Ramadan, and is the first thing that is eaten to break the fast for the day. It serves as a good source of energy and provides essential vitamins.
A number of factors have contributed to the high prices of dates this year, including freight costs, the imposition of general sales tax, custom duty, and labor costs, according to Hanif Baloch, secretary-general of the association.
“A truck load of dates that was available for 55,000 rupees last year now costs 70,000 rupees. Similarly, the labor costs and cold-storage charges have increased,” he said.
“Due to the decreasing purchasing power and high inflation, individual buying has declined, and charity groups have increased purchasing.”
Apart from the Irani- and Pakistani-origin dates, the prices of dates imported from Saudi Arabia have shot up too, according to traders.
“The prices of Saudi dates, including Ajwa, Mabroom, Anbara Safwai, Sukkari, Barhi, Saghai, Kalmi, Khudri, Kholas, and Medjoul have increased by around 500 rupees per kilogram this year,” Zaheer Khan, a trader at Khajoor Market, told Arab News.
Hanif noted that this year people, fearing more price hikes, had purchased dates before the start of Ramadan and now the market had slowed down to a large extent.
“Trading would usually remain elevated until the middle of Ramadan, but this year activities do not reflect what it used to be in previous years.”
The traders said the devaluation of national currency had also played a major role in the high prices of dates. The Pakistani rupee has devalued by more than 16 percent so far this financial year, with the US dollar trading at 185 rupees on Tuesday.
Pakistan meets around 50 percent of its peak demand of dates through imports from Saudi Arabia, Iran, Iraq, and other Gulf countries.