MENA House: Ramadan Begins and Food Prices Soar

The Muslim feast of Ramadan begins today. With it comes the start of special television soaps, exclusive programmes, traditional Ramadan lanterns, and LOTS of food. Oh, and the clock has gone back one hour.

Imagine Christmas in the West. Imagine that it is every day for a month: that is Ramadan in Egypt and the surrounding MENA region.

Fasting from dawn till dusk, but as soon as the sun sets, the celebrations begin. Exchanging of gifts, gatherings of friends and family through the evening until the early hours of the morning, and a banquet of food are daily events.

Traditionally, food prices increase around the start of Ramadan. However, this year prices have soared well above inflation rates. Despite predictions and debates over the matter, in the hope that there would be some checks and balances over the rising costs, very little has been done.

Only today a regular shopper claimed that, within a day and night, the price of chicken breast had increased by 15 Egyptian pounds (EGP). The prices of nuts, pistachios, pumpkin seeds and Middle Eastern sweets have all risen by a minimum of 5EGP. The cost of bread, cooking oil, sugar, lentils, and pasta among other household basics has also increased by up to 20% in the past month. The government agency CAPMAS produced figures revealing that vegetable prices had moved upwards by 45%.

Egypt, in the summer of 2008, experienced a severe food crisis. However Ramadan 2010 will witness greater inflation. The Cairo-based Central Agency for Public Mobilization and Statistics reported that prices increased in July by 2.3% reaching the urban inflation rate of 10.7%, its highest rate since August 2008, was largely because of food (especially meat and poultry) and tobacco.

Mehwar’s 90 minutes collected a range of opinions. Whilst some people argued that the increase in food prices were too unreasonable, others claimed that it would not put them off purchasing their traditional Ramadan food even if it may hurt their bank accounts. All agreed, however, that this was an inconvenience that they may have to put up with until the end of Ramadan.



The government has attempted to combat the problem by providing basic household goods for a reduced price, and according to officials, outlets will be supplied with extra quantities of food. Ahmed el-Rakaybi, president of the state-run Holding Company for Foodstuffs, said that vendors had been supplied with 47,000 tons of sugar and 3500 tons of rice. Sugar, rice, flour, cooking oil, beans, and lentils will all be sold at lower prices, while the cost of meat will range between LE23 and LE38 per kilo and fish between LE6.5 and LE13.75 per kilo.

This may be a more financially restrained month of festivities, nevertheless the celebrations will continue. Happy Ramadan!

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[Catherine]

Vendors complain of a monopoly by wholesalers and poor government supervision over pricing. Mohamed Ragab, a member of the Cairo Chamber of Commerce, said many stores and shops rigged the market by hoarding good for months and then selling them for higher prices as the demand rose.
http://latimesblogs.latimes.com/babylonbeyond/2010/08/egypt-discernable-increase-in-food-commodities-ahead-of-ramadan.html" rel="nofollow">http://latimesblogs.latimes.com/babylonbeyond/2...

[asavgy asavgy]

In last weeks Economist, there's a semi-decent article on reading sentiment from large masses of anecdotal data (tweets, mainly). rhnblg rhnblg - Belstaff Chaquetas Venta.