Saudi Gazette report MADINAH – Food prices have increased by up to 30 percent for some items over the past three months as consumers count down the days for the holy month of Ramadan to begin, Al-Madinah daily reported. During the month of fasting, which is set to begin this year in late June, food prices generally increase due to high demand. Many food outlets have blamed importers for the price hikes, while the head of the commercial committee at the Madinah Chamber of Commerce and Industry (MCCI) said prices are subject to external factors, including the prices of raw materials used in the manufacturing process. According to reports, many consumers have abandoned brand loyalty and begun using alternate products. Some have set up cooperative societies for bulk buying. A prominent importer of food items claimed that the recent price rises are due to price increases in the country of origin. He said there had been a 27 percent increase in the price of rice since the beginning of the year. Wholesale prices for rice have increased by between SR23 and SR25 and milk and dairy products by between SR5 and SR10, while the cost of a carton of frozen chicken has increased from SR88 to SR93. Sedeeq Yahya, sales supervisor at a wholesale market, confirmed that during the past three months, the prices of most foodstuffs have gradually increased with rice witnessing the highest increase. He also said the increases were implemented by foodstuff importers without any prior warning. Wholesale merchant Adel Al-Mezaini said the recent price increases have slowed business down for wholesalers. He said importers should be asked to provide justification for the increases. “The consumer typically ends up paying for the price increases as food importers set a profit margin for wholesalers. We need the intervention of concerned bodies to monitor and review prices before the month of Ramadan when families usually incur huge expenses,” he said. Salem Al-Khader, a consumer, expressed concern about the price increases and said restaurants will also, in turn, raise their prices, causing more hardship to consumers especially in Ramadan. The head of the Commercial Committee at the Madinah Chamber, Mahmoud Reshwan, said price fluctuations are subject to external factors as most foodstuffs are imported. “This is also the case with imported raw materials used in locally-produced foodstuffs. However, 100 percent locally-produced products such as milk and other dairy products are not experiencing any price increases,” he said while adding that prices of imported foodstuffs and raw materials are affected by international supply and demand and also by exchange rate fluctuations. “Government efforts in subsidizing some foodstuffs cannot be denied, but there is a need to look for alternative markets and products from eastern European countries. Cooperative societies should be set up around the Kingdom and they should be supported by the government to allow the purchase of foodstuff at reduced prices,” he added. Reshwan advised consumers to abandon the culture of loyalty to specific brands and seek other available products, which will improve overall competition and reduce prices to reasonable levels.
