Devaluation, costly diesel hit commodity prices

Rupee devaluation against the US dollar over the last few days followed by massive increase in diesel rate has started making a negative impact on commodity prices besides jacking up the cost of living. With the holy month of Ramazan approaching, stakeholders fear an unusual situation in prices of imported finished and raw material in case landed costs continue to crawl up due to losing strength of rupee and a further rise in diesel rates. Talking to Dawn, CEO Soya Supreme Ahmad Ghulam Hussain said that a 14 per cent rupee fall against the greenback and soaring transportation cost on account of a Rs35 per litre increase in diesel rate had served to cause a jump in ghee/cooking oil prices by Rs50-60 per kg/litre alone, excluding the impact of gas and power tariffs and 50pc hike in the packaging cost. As traders have old stocks, this increase would be visible in coming weeks, he said, adding that LCs are retiring at Rs270 as against Rs230.