CAIRO -
There is no talk above the high prices in Egypt, like many countries in the world, with the approach of the month of Ramadan, in which spending increases due to the special customs and traditions of the blessed month, most of which are related to food and drink, whether for the family, family or friends.
The markets in Egypt have prepared for Ramadan since the middle of the month of Rajab with all kinds of “yamish” such as Qamar al-Din, nuts, figs, dates, dates, drinks, pickles, table olives, decorations, lanterns and lights, but as usual, they witnessed an increase in prices even before the outbreak of the Russian-Ukrainian war.
The increase, according to traders and importers of Al Jazeera Net, ranged between 15% and 20% as a result of import restrictions and the high costs of shipping and transportation, and not only because of the rise in the same goods from abroad, noting that Egypt imports 80% of its Ramadan needs from abroad.
Market price turbulence
Magdy Tawfiq, in the Perfumery Division of the Cairo Chamber of Commerce, said that the increase in prices has nothing to do with the repercussions of the war in Ukraine, because Ramadan supplies were contracted, imported and entered the stores, but rather distributed to the shops before the war, and the prices were announced in all stores for more than a month .
Although Egypt is one of the largest producers of dates in the world, it imports different types of Saudi and Jordanian dates, on top of which are the dates of Madinah, Sukkari, Al-Maftel, Al-Khudari, Sagai and Majdoul, and it is famous for its different types of dry dates.
It also imports all kinds of nuts such as walnuts, almonds, hazelnuts, pistachios, whether American or Iranian, figs, Syrian Qamar al-Din, apricots, prunes, tamarind, coconuts, Iranian raisins, dom, carob and others.
With regard to lanterns and Ramadan decorations, Barakat Safa, deputy head of the stationery and toys division at the Cairo Chamber of Commerce, told Al Jazeera Net that "many workshops and factories maintained a low level of production due to the high prices of raw materials," noting that "the difference in prices is in the price of The minimum and maximum for the lantern and what is in between, there are many prices according to the type and material of the lantern.
Many workshops and factories maintained a low level of production due to the high prices of raw materials (Al-Jazeera)
popular grumble
Citizens complained, in various statements to Al Jazeera Net, about the high prices and disruption of their monthly home budget, stressing that these days seem more difficult than ever.
An accountant in a private company said, "Current circumstances force us to review the list of priorities for the house, and to search for alternatives that are less expensive, but they will certainly be of lower quality. The high prices have not stopped for years."
In turn, a housewife in the Haram neighborhood in Giza expressed her grumbling about the price pressure on her family, saying, "What was happening was not taken into account. We were eagerly waiting for the month of Ramadan in an atmosphere of joy and happiness, and we bought the lantern and hung the lights, and we bought the goods of the holy month, then we were surprised by our pockets." It's empty... We won't eat yamesh and nuts for the whole month, of course."
With the first strike of the Russian army in Ukraine a month ago, the balloon of basic commodity prices exploded, and attention turned to flour, oils, ghee, sugar and grains, which was followed by a jump in the prices of white and red meat and fish, and the price of a free loaf of bread jumped 50% at once, amid the grumbling of a wide sector of citizens.
From 8 pounds to 75 pounds.. The gas cylinder journey in 9 years pic.twitter.com/umCP8wo1iC
— Al Jazeera Egypt (@AJA_Egypt) March 18, 2022
The new prices made the majority of Egyptians confused and angry, especially with the rise in the price of a free loaf of bread, as there are about 27 million citizens who do not depend on subsidized bread, according to Sherine El Shawarby, professor of economics at Cairo University and a member of the National Planning Institute, calling for them not to leave the price shock.
Government decisions and actions
In an attempt to confront the price hike, the Egyptian government decided to compel farmers to supply wheat to the stores of the Ministry of Supply, with a cash incentive of 65 pounds per ardeb (equivalent to 150 kg), amid demands to double the incentive after the rise in wheat prices and the dollar against the pound.
The government also set, in a rare decision, the selling price of free bread, including special bread and Fino bread, and obligating all shops and tourist bakeries to it, and other outlets, for a period of 3 months, and increasing the penalty for violators with imprisonment and a fine.
The rise in food prices coincided with the Egyptian government’s sudden decision to raise the prices of domestic and commercial butane gas cylinders for the second time in only 3 months, to become 75 pounds and 150 pounds, respectively, an increase of 5 and 10 pounds over the last time the prices increased on the fourth of last December. (One dollar equals 18.50 pounds).
# Sisi discusses a bakery owner about the reasons for raising bread prices and a tendency to impose compulsory pricing on "tourist living" pic.twitter.com/g9JzsuGPaN
— Al Jazeera Egypt (@AJA_Egypt) March 20, 2022
Those affected by the high prices of butane gas cylinders are the rural people in the Delta and Upper Egypt, who do not have natural gas in their homes. This step caused a rise in the prices of all popular meals, especially beans and falafel, but the government says that it is still subsidizing gas prices despite the increase in the price of gas cylinders. The citizen has to help the state in bearing part of the burden.
Dr. Abdel Tawab Barakat, an advisor to the former Minister of Supply, warned against leaving bread at free market prices, because it is "a strategic commodity, and represents the main meal for the majority of Egyptians, so it was necessary for the state to intervene to stop the fever of rising bread prices."
He expected, in statements to Al-Jazeera Net, that the state would maintain the price of subsidized bread that is spent on ration cards and benefit about 70 million citizens, despite its intention to move its price, which currently stands at 5 piasters, claiming to increase the cost on the state budget, but protecting bread alone is not enough, as inflation It will affect everything.
The government sought to mitigate the effects of the high prices. A few days ago, it launched the “Welcome Ramadan” exhibitions, the “We are all one” initiative, and “consumer complexes” in Cairo, Giza and a number of governorates, and announced the launch of various products and food and Ramadan commodities at discounted prices ranging between 20% and 30%, and that With the participation of many major food companies.
The Egyptian armed forces have also prepared one million cartons of food commodities to ease the burdens on citizens during the month of Ramadan to distribute them in markets at reduced prices under the directives of President Abdel Fattah El-Sisi, which reflects the scale of the price crisis in the markets.
The Armed Forces own 202 fixed outlets and 1,187 mobile outlets, and the Ministry of Interior contributes 740 fixed outlets and 190 mobile outlets as part of the state's efforts to provide citizens' requirements for goods, according to what was published by local media.
In an attempt to control the markets, the government sets the selling price of a loaf of free bread until further notice and a penalty of up to 5 million pounds for violating outlets pic.twitter.com/CDBR8A60Uo
— Al Jazeera Egypt (@AJA_Egypt) March 21, 2022
Warnings and inflation
Meanwhile, the Food and Agriculture Organization of the United Nations (FAO) warned that global food and feed prices could rise between 8% and 20% as a result of the war on Ukraine, which would lead to a jump in the number of malnourished people in various regions. around the world.
The organization warned that about 9.6% of the population in Egypt is at risk of not being able to provide healthy food if their purchasing power declines by a third, especially on the poorest classes in the world who spend most of their income on food, with the disruptions in food supply in the global market.
The total annual inflation rate in Egypt rose last February for the third month in a row, to record 10%, compared to 8% in the previous January, the highest rise since mid-2019, according to a statement by the Central Agency for Public Mobilization and Statistics.