Price increase announced by Panther Tyres puts govt’s efforts down the drain!

Lahore, 22nd June: The government is trying to support the agriculture sector and trying to ease the pressure on farmers but the related companies seem to have some other ideas.

A big blow came today when Panther Tyres Limited issued a price increase circular to its dealers. The circular states that a new price will be implemented with immediate effect and a new price list will be provided shortly.

The authorities need to take up the matter and enforce the price control as the companies increase the rates of the products at their sweet will and the consumer is forced to purchase at higher prices.

The farmer is defenseless in this case because the tyres are already expensive, the tractors are short and being sold at higher rates, the company seem to have no intention of fulfilling the market demand and controlling the unjustified market rates.

This seems to be the ploy of the companies to create an artificial shortage to increase the market rate and then increase the company prices claiming pressure on production.

A classic case of inefficient production is when a company already knows the demand and has the advance but over books in order to control the rates.

Pakistani farmer is exposed to this exploitation, they pay 100% advance at the time of booking but the company increases the price and claims the price increase despite the fact that 100% advance payment has ben received in the company. Such practices should be discouraged and government needs to take notice.

Now as the tyres are getting expensive which will have a ripple effect and the prices for related products would also increase. Hence, the companies will be giving the argument that the production cost is going up and price adjustment is inevitable.

Giving tax rebates or loans to the farmer will not improve the situation but a wholesome policy to improve the supply chain for the complete Agri sector can bring out the desired results.

All the stakeholders have to understand the problem and lookout for a solution. It seems the efforts in isolation will never bring out the desired results.

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