KARACHI: Unprecedented food prices amid squeezing incomes have already deprived the majority of households to afford decent breakfast, a fresh hike in tea rates both branded and loose would further make it difficult to manage a cup of tea.
Packers and traders on Monday shocked consumers with Rs100 hike in 900-gram branded packs and around Rs200 per kg in loose tea.
Traders said that the massive rupee devaluation during the PDM government and ongoing depreciation under the interim government set-up had made an adverse impact on the landed price of black tea imports.
Since the caretaker government was set up, the greenback rate surged by 2.9pc or Rs8.64 to Rs297.13 in the interbank market.
Giving an example, a retailer said the branded 170-gram pack now costs Rs350 as compared to Rs330, while the small pack now sells at Rs180 as against Rs170.
FPCCI Standing Committee on Tea Convenor Zeeshan Maqsood said that the actual price rise in branded tea comes to Rs120 per kg as the pack net weight is 900 grams and not 1kg (1,000 grams).
He anticipated further hikes in case the rupee continues losing its value against the dollar. An increase in the diesel rate is also pushing up the transportation cost.
The Pakistan Bureau of Statistics (PBS) data showed the country imported 22,898 tonnes of tea ($56m) in July versus 18,054 tonnes ($45m) in July 2022, reflecting a drop in average per tonne (APT) price to $2,445 from $2,510 in July 2022. Tea imports plunged to $569m (231,449 tonnes) in FY23 from $626m (253,748 tonnes) in FY22, showing a slight fall in APT to $2,458 from $2,467 in FY22.
Mr Zeeshan said that the country’s annual tea consumption is estimated at 360,000 tonnes based on a population of 240 million and per capita usage of 1.5 kg every year. It means that 130,000 tonnes of tea find its way into the country through illegal channels.
Consumers are already perturbed over the rising price trend in loose and tetra milk, sugar, bread and butter, making breakfast unbearable for many low-income households.
Published in Dawn, August 22nd, 2023
