USC denies increase in profit margins

ISLAMABAD : The Utility Stores Corporation (USC) has clarified that the recent increase in prices of different commodities at its stores is due to an increase in their rates by the manufacturers.
“We have not increased our profit margins but as the manufacturers have enhanced prices of their products we are forced to sell them accordingly, “Managing Director USC Brig ® Hafeez Ahmed told APP on Sunday.
Dismissing the reports appeared in a section of press that the corporation had increased the rates of ‘atta’, rice, ghee and cooking oil without any reason, he said that the basic objective of USC was to provide essential items to the deserving at affordable rates and not to make money.
He said the hike in price of edible oil in the domestic market was also due to a recent surge in price of palm oil in the international market, which he added had a great share in the manufacturing of edible oil.
He said the corporation had only increased the prices of those items, which had also witnessed an increase in the open market, adding that the gap between USC and open market prices was still the same as before the current rates.
He also rejected the reports that the increase in prices at the utility outlets had decreased the number of customers.
“The number of customers at our stores has not decreased but it is increasing with each passing day. It is also evident from the long queues of people in front of utility outlets,” he remarked.
The new rate of a 20 kg bag of flour is Rs. 280 as compared to Rs. 260, while basmati rice which was selling at Rs. 60 per kg is now Rs. 72. per kg. Similarly, the new rate of Manpasand ghee is Rs. 80 kg as against to its old price of Rs. 67 per kg.
Consumers are paying Rs. 370-380 for a 20 kg bag of flour in the open market, which translates into a big difference of Rs. 90-100 per bag when compared with USC rates. They are paying Rs. 100-105 per kg for basmati rice in the market, which still makes a difference of Rs. 28-33 per kg.
Similarly, ghee and cooking oil is available in the open market at Rs. 140-150 per kg, which makes a sharp difference of Rs. 68-78 per kg when compared with USC branded Manpasand ghee.