Hoarding creates shortage of goods

Thursday, June 11, 2009

With only three days left for the budget announcement the prices of luxury goods have hiked owing to shortage due to hoarding by traders.

Traders Action Committee Chairman Siddiq Memon said that prior to every budget, two trends are common, prices of most goods, especially luxury items rise and available stocks in the market sell much more rapidly.

This year, Memon informed, prices of the 350 items present on the import list have hiked by 30 per cent including ready-made garments and shoes.

He admitted the fact that traders hoard leading to shortage in the markets. There is a difference between keeping an inventory or stock of goods in warehouses and hoarding. Hoarding means not releasing the goods from warehouses even if there is a demand in the market.

“Currently clothing from China, Thailand, Japan etc are short in the market and after the announcement of the budget, prices of these are expected to rise further,” he added.



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