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Egypt Braces for Price Hike of Raw Materials Post Eid al-Adha

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With the end of the “Welcome to Ramadan” exhibitions, the heads of the two chambers of commerce expect food prices to rise significantly after Eid al-Fitr, according to Egyptian press reports.

The sources explained, according to Al-Shoruk, that exhibitions used to provide large volumes of supplies at discounted prices of up to 30%, which to some extent led to price stability for goods in the free market, highlighting the need to tighten controls and increase the supply of goods in the markets so that prices did not run away after the end of the exhibitions, while another source believes that the end of these exhibitions will not have an impact on the market.

The Federation of Chambers of Commerce announced in early January last year that the “Welcome to Ramadan” exhibitions were to open three months before the start of the holy month to make life easier for citizens and prevent prices from falling in the local market, especially for goods offered at a 30% discount.

Mohamed El-Fayoumi, head of the Qalyubia Chamber of Commerce, said that the “Welcome to Ramadan” exhibitions were like a pain reliever, but did not solve the problem, which is the lack of supply of goods and the high cost of products by a very large percentage.

Fayumi expected that food prices would rise rapidly with these exhibitions ending immediately after the feast, if the supply of goods was not properly secured and market controls were tightened.

He explained that the main objective of the exhibitions is to connect the trader with the consumer directly and sell the goods at a practically wholesale price, bypassing many intermediate circles, adding that the exhibitor was provided with free space without paying any fees in exchange for selling the goods at a price below the market price of up to 30 %.

Ahmed El-Wakil, head of the Alexandria Chamber of Commerce, also expects commodity prices to rise by a large percentage after the end of the “Welcome to Ramadan” exhibitions, noting that the market will lose much of the supply of goods that were somewhat reasonably priced. .

He pointed out that prices have risen in the intervening period despite the presence of exhibitions that showcase goods at reduced prices, saying, “What do you think if these exhibitions don’t exist?”

The agent believes that the crisis is presented in the return of problems with the release of customs again, due to the lack of availability of the dollar, and this threatens with a shortage of supply and a significant increase in prices, as happened last year, explaining this by the fact that the beginning of this year was marked by a large release of goods accumulated in ports, with the preparation for the month of Ramadan and feeding exhibitions, and this is what slowed down the rate of growth in commodity prices in the recent period, but with the return of this problem again, prices will rise exaggeratedly.

For his part, Adel Nasser, head of the Giza Chamber of Commerce, says that the Welcome to Ramadan exhibitions were able to meet the surge in demand for goods during the months of Shaaban and Ramadan, and “without these exhibitions, prices would have risen.” crazy for the last two months.”

Source: Al-Shoruk

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