‘Greedy traders’ raising food prices

The Council of Saudi Chambers (CSC) officials are yet to believe that the onset of Ramadan and the scarcity of workers resulting from the ongoing status rectification process are pushing up food prices.
Shannan Al-Zahrani, a member of the CSC’s national commercial committee, for instance, hold “greedy traders” responsible for the problem.
“There are various reasons for rising prices, including greedy traders,” he said, and added that prices will not rise if traders dispose of their old stock.
However, customers need are also driving up prices by buying more than they need, Al-Zahrani observed.
He said small stores, or so-called ‘mini-markets’ operated by illegal expatriates in residential districts, have always tended to increase prices. Customers often do not notice that such stores sell products close to their expiry dates, he said.
However, large food markets and supermarkets provide customers with different varieties of goods at reasonable prices, he said.
The government’s strong stand against illegal workers, he said, would stabilize prices. It would also result in customers getting the opportunity to buy quality goods from legal shops, according to Al-Eqtisadiah business daily report published yesterday.
Al-Zahrani called on consumers not to buy products at high prices. He said some traders are taking advantage of rising demand in Ramadan to increase prices.
“Traders cannot raise prices of goods subsidized by the government. On the other hand, prices of other goods (that are not subsidized) fluctuate because of several external factors,” he said.
Muhammad Al-Sameen, a member of the commercial committee of the Asharqia Chamber, said traders generally adopt a two-pronged marketing strategy during Ramadan. One strategy is to attract customers with goods at discount prices while the other policy is to tempt customers to buy goods at higher prices using various marketing techniques.
He said prices in Saudi Arabia have been rising gradually since last Ramadan, with traders claiming this is caused by higher prices for goods on international markets.
An ineffective local market monitoring system and the absence of vigilant consumers have seen people become easy prey for greedy traders, he added.
Abdullah Silsilah, a member of the commercial committee at the Jeddah Chamber of Commerce and Industry, believes rising prices are mainly due to problems at the Jeddah Islamic Port and recent regulations. He was referring to the recent hike in fees for labor card renewals. He said businesspeople pass these costs onto customers.
Delayed delivery of goods at ports also affect food prices, he said.