Unholy price rise before holy month bites consumers hard

Consumers shop at a supermarket in Riyadh in this file photo.

By SARAH ABDULLAH | ARAB NEWS

JEDDAH: Consumers claim they are noticing a price increase of at least 20 to 30 percent on staple items such as poultry and meat, cheese and canned food as the holy month of Ramadan approaches.

“I noticed that the price hikes first began about two weeks ago when I went to the wholesale store to purchase some chicken and found the price had been increased from SR35 to SR58,” Sawsan Al-Gahtani, a Saudi mother of five, told Arab News.

Al-Gahtani said she has been shopping for Ramadan for the past month and keeping most items in the freezer as a way to beat the price hikes, but despite her efforts she said she has already been forced to pay inflated prices. “I asked the cashiers and store managers why the prices have suddenly increased, and was told the rises in prices are from global manufacturers who have raised their export prices,” Al-Gahtani said. She added that she did not believe what she was told because the same price rises were apparently occurring every year. Other staple items witnessing price increases are vegetables including onions, tomatoes and parsley.

The price of tomatoes, SR8 to SR10 per container a month ago, has increased to between SR15 and SR20. Prices of red and white onion bags have increased from SR10 each to between SR12 and SR15.

However local vendors deny they are to blame for the price hikes. “Tomatoes are imported from Syria and onions from Egypt and Yemen, which have all been experiencing political unrest, lowering supply and in turn causing price increases,” Faisal Al-Hajaibi, a vendor at the vegetable market in Jeddah, told Arab News.

Another factor that could be pushing prices up is the increase in the Kingdom’s annual inflation rate, which rose to 4.7 percent in June from 4.6 percent in May, with food and beverages recording an increase of 0.5 percent.

Demand for food and beverages according to analysts is rising in Saudi Arabia, making it one of the largest markets global manufacturers and food producers are targeting.

According to statistics from the Ministry of Agriculture, Saudi Arabia currently accounts for up to 63 percent of the GCC’s $9 billion food and beverage market, driven by a growing population that is expected to boost food demand by 31.2 percent by 2014, analysts say.

Vowing to solve the problem of unjustified price increases, the Consumer Protection Association (CPA) announced on Saturday it is working with government authorities to curb price hikes and has devised a 10-point strategy that will benefit consumers and governmental price monitoring. They also said that as part of the strategy, a legal framework would be set up including the establishment of laws to enforce the initiative.

In an April interview with Arab News, CPA President Nasser Tuwaim warned that according to worldwide standards set by the World Trade Organization, of which Saudi Arabia is a member, 15 percent is the highest rate businesses are allowed to mark up prices on goods to turn profits.

“We would like to send a message to the business owners who are hiking prices by 100 percent and even 200 percent that this behavior is unethical and goes against Islamic principles, as harming a person’s livelihood is among the worst things a trader can do,” Tuwaim said.

Comments

BETTY WIGGINS

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It's the same the world over....always a greedy person taking advanage of someone.

Wonder how they will explain this to ALmighty Allah????

SIMON

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Rising prices are always a concern for people, so perhaps during Ramadan Saudis could adopt a "less is more" approach and thus save some money? As a non-muslim living in Saudi Arabia I always find Ramadan a confusing time, as my expectation is that people will adopt a very simple approach to life for a month; and yet people seem to adopt an "excess is best" approach, particulalrly when it comes to food consumption!

ABDUL HAMID

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everything is said but nothing is done to tackle this menace. Whenever the king announces some monetary benefits to its people the price comes next week with it and its exhorbitant. From the rent to smallest bread , prices of everything has inflated unabated, the authorities have no department or laws to check price rise only sentence is added here it's haram in Islam but business community is not islamist or socialist thay are Capitalists.

YUSUF MARIO GERMINO

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There should be a stop on these "unholy" and "highly opportunistic practice". These merchants and businessmen should be ashamed for making life more difficult for Muslims during Ramadan. Take for example the hotels and accommodations in Makkah and Madinah, there is absolutely nothing admirable when they increase their rates by more than triple. These business practices even put unbelievers to shame and disbelief. The Ministry of Trade and the Haia should prevent these highly immoral acts.

FAWWAZ AL-MAIMANI

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Have you ever actually been to a local supermarket? You mention nothing of the sudden, unreasonable increase in food buying before & during Ramadan. More demand = more price. If the consumers want to send a message, they can stop hoarding cartfulls food as if the month was about eating more instead of less.

MUHAMAMD YOUSAF

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Really this is very strange, i know about european countries, when ever any christian festival comes, they slash the prices so that every one can enjoy the festival where as in our countries... it is AJEEB

AZIZ

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I was in Australia during recent Easter Festival time. It was interesting to note that each and every shop, super market and mall was selling the items on discounted prices mentioning that it is Easter sale. Whereas in India and Pakistan shop keepers do brisk business on an escalated prices saying that this is the time for making money. Now that tendency has been entered into Saudi Arabia also. This is all a sick mentality of the business men and they do not have any ethics and morals and even no fear from Allah. It is highly condemnable and disgusting attitude of the business community.

AHMED

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Back in my country, during the holy month and both Eid, the prices boost to the sky same as the rocket. The culprits behind this, usually fellow muslims who are greedy to suck the money of the muslims. During the festives of the non-muslims, the prices comes down! This is the different between non-muslims and money greedy business minded muslims.

I can say and see the same stuff even here. If there is a say that every thousands and thousands would increase the age, then I would be busy collecting those money.

Dear Business Minded Muslims, please wake up and be supportive to fellow muslims.

ABDUL RAHIM

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I would like to bring to the notice that the retail sale of gold differs from shop to shop and shopkeepers are not putting the gold price on notice board in the shop. They are not at all selling the gold at the international price as it should be. There is a vast difference in international price and the retail price. Hence I request the authorities to monitor this and help the consumers. Even in Makkah it is the same. I hope that the authorities would consider this matter and take necessary steps.
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