The prices of some food items have decreased by 20-25 percent in the past few months giving a much needed respite to consumers. However, other food prices have been at the same level since the first quarter of this year. The trends in the local market do not show any positive or negative indications, according to some influential dealers in the market. They attributed the current fluctuation in prices of foodstuff to the economic principle of supply and demand in addition to the difference in the exchange rates of different currencies against the dollar. The latter is considered to be the main reason for the increase in some food prices. Abdul Aziz Mahroos, an importer, said the prices of different varieties of rice have dropped by 10 to 15 percent during the last couple of months. He attributed this drop to the reduced cost of rice in the exporting countries. He said prices in India, the most prominent rice exporting country, have dropped significantly in recent months. However, he pointed out that the delay in this year's monsoon has affected the rice crop in India and Pakistan. This has badly affected farmers in the two countries and a 40-60 percent fall in rice production is expected. “This will lead to a rise in prices once again,” Mahroos warned. Mahroos also expects sugar to be costlier in the coming months attributing this to Brazil's decision to ban licenses for establishing sugar plantations in forests. The decision will have negative implications for the global supply of sugar, he explained. Ali Al-Zaher, a foodstuff merchant, said that the prices of most essential food commodities, such as, rice, oil and sugar have been stable in the past two months, pointing out that current prices have not changed since the first quarter of this year. He said merchants in the Kingdom are expecting new price lists which will be issued by companies in the next few days. He said the prices of cooking oil have also been stable. However, Abdul Ghani Shaker pointed out that most types of powdered milk have registered a significant drop in price, with some decreasing by as much as 30 percent.
