“A breakthrough is imminent.” Adviser to the Prime Minister: Three factors to curb price increases
“A breakthrough is imminent.” Adviser to the Prime Minister: Three factors to curb price increases
04/16/2021 11:27:04
The Prime Minister’s Adviser for Economic Affairs, Mazhar Muhammad Salih, identified three basic factors to limit the rise in prices of goods and commodities in the local markets.
Saleh pointed out in a press statement, “There is an emergency seasonal price gap controlled by the rise in the prices of some imported food commodities that are determined by the global stock exchanges, for reasons related to the recession that hit the global economy last year, and as a result, the costs of producing foodstuffs increased.”
This coincides with the increase in global demand for food in light of the openness of the economy and international trade this year due to the expansion of vaccination levels against the Corona epidemic and the rapid opening of global markets compared to the previous year.
He added that “Iraq is currently living in the months of the agricultural transition from the winter season to the summer, which are months when foodstuffs are scarce in most, and this is what pushes them to increase their prices.”
Despite affirming the government’s responsibility towards consumer protection and maintaining reasonable prices, Saleh pointed to “3 basic factors to limit the rise in prices, the first of which is providing sufficient hard currency to the commercial sector to finance foreign trade requirements, and the second is customs taxes and reducing them to the lowest possible level, especially those related to them.” With basic food items. ”
As for the other factor, Saleh said, “It is related to the upcoming summer agricultural season which is approaching, which will provide a great food supply in the following weeks.”
It is noteworthy that the month of Ramadan falls this year in light of a significant increase in food prices, especially after the official authorities decided to reduce the dinar against the dollar.
The devaluation of the local currency cast a shadow over many low-income citizens, as not only the middle and poor classes were affected, but the decision affected merchandise merchants who import goods and pay their value in dollars.
And the pressure on Iraqis increases during Ramadan, the continuing outbreak of Corona, as the impact of the precautionary measures extended to the abolition of Ramadan traditions that had been in place for decades, specifically those inherited social customs that the Iraqis did not leave in the most difficult circumstances that the country had previously experienced.
One of the most prominent customs that the Corona pandemic has stopped is the overcrowding of markets with shopping before breakfast.
The sellers were frustrated because of the lack of buyers in the markets, and he says that the month of Ramadan every year was a month in which there was a lot of commercial movement, and it usually represented a source of great profits for traders, but the current wave of high prices changed that this year at least.
They held the government responsible for the rise in prices, noting that the devaluation of the dinar against the dollar in the state budget for 2021 – which was approved at the end of last month – led to an increase in the value of goods by more than 20%.
alforatnews.com
