CAIRO: Commodity prices have been on the rise in the past few months as is growing concern that inflation could add further stress to Egypt’s currently sluggish economy..
Tarek Tawfik, chairman of the Chamber of Food Industries, said that prices of fruits and vegetables has slightly stabilized for the time being and does not foresee the increase of prices in the near future.
A main cause of frustration that mounted leading up to the recent uprising was due to the upsurge in prices of main staple items such as rice, sugar, oil and cheese.
“Right now there is stability among the prices and I don’t foresee any increase or decrease for the time being,” Tawfik told Daily News Egypt.
While some have said there were decreases in prices for some items, such as meat and poultry, Tawfik explained that it could be due to the short “shelf life” of those products as the reason for their drop in prices.
He attributes the fluctuation in prices to seasonality of products and high commodity pricing as well as the supply and demand.
“At the end of the day, it’s all about supply and demand, but the seasonality of the items really dictates a lot of prices,” said Tawfik.
While talking to one fruit vendor in Cairo who’s been in business for over 15 years, he said his stand didn’t experience much problems during the uprising as far as lack of sales goes.
“Of course prices go up and down depending on where you get your fruit and vegetables, but I haven’t been affected really and my prices have stayed steady,” he said.
At the same stand on the first day of the protests, potatoes were selling for LE 4.50 per kilo and are currently selling at LE 2.50 per kilo. Tomatoes also decreased by about LE 2 since the start of the uprising.
According to the Information Decision and Support Center (IDSC) commodity index that reports current market prices, prices of meat, vegetables and fruits have shown a decrease in prices.
The price of meat has decreased by as much as LE 5 per kilo and poultry showing a decrease of about LE 3 per kilo.
While the government has not stepped in and interfered with the commodity, Tawfik says, they have made some items available at subsidized prices to alleviate the frustration.
“Items such as sugar, wheat, oil and cheese have been made available at lower prices to those that receive ration cards,” he said.
Ration cards government issued cards that are distributed to those who qualify in an effort to provide staple items at subsidized prices to aide in lightening the burden of escalated prices.
“The government has distributed around 60 million ration cards as a way to help ease the cost for those who can’t afford the increase,” Tawfik added.
According to a source at the Cairo Chamber of Commerce, who asked to remain anonymous, the government has played a bigger role in stabilizing prices than some people have stated.
“I think the government has helped out a lot by offering subsidies and also eliminating the custom duties on importing certain items so that the items could be offered at lower prices,” he said.
The source also agreed with Tawfik in that the prices have currently stabilized and he does not foresee an increase as seen in the previous six months.
One of the first statements made by the new Cabinet was a promise that they will bear the burden of increases in global food prices.
