An Expert Explains Eight Reasons For The Rise In Food Prices And Offers Solutions To Reduce Them
An Expert Explains Eight Reasons For The Rise In Food Prices And Offers Solutions To Reduce Them
02/19/2022 | 4:37 PM
Information / Baghdad.
On Saturday, the economic expert, Manar Al-Obaidi, presented a number of reasons behind the rise in food prices, referring to the most prominent solutions to reduce their prices.
Al-Obaidi said, in a Facebook post, which was seen by / the information /, that “the inflation rate in the food sector increased by 6.6% compared to the beginning of 2019,” noting that “food items represent 28% of the relative importance of the Iraqi citizen among the total products.”
He explained that “the factors that led to the rise in food prices are: –
1- Changing the exchange rate of the dinar against the dollar has a direct impact on the prices of foodstuffs.
2- The high rate of inflation globally, not only in Iraq.
3- The increase in the demand for materials compared to the supply, especially the main ones globally, which led to a rise in basic materials such as wheat, corn oil and sugar.
4- The rise in oil prices led to a rise in prices in the transportation sector of materials, which will certainly be reflected in the price of the material itself.
5- The high rate of population growth in Iraq, which increases demand in return for the inability to meet most of the demand in the market.
Regarding solutions to reduce prices and reduce inflation, Al-Obaidi indicated that this is through:
1- Analyzing the high-priced materials and the percentages of rise, and measuring them on each governorate without the other, and the time periods.
2- Analyzing the reasons for the rise, whether as a result of the rise in the exchange rate or the external influences mentioned above.
3- Establishing agricultural and industrial projects necessary to provide food security.
4- Establishing giant storage projects that allow the purchase of large quantities of basic materials at the stage of their low prices, and keeping them as a kind of protection and using them in the event of high prices.
5- Reducing transportation costs by going to buy from sources that take into account the transportation price and concluding long contracts with the state in the field of processing.
6- Foreign investment in agricultural projects located in highly productive lands (higher than Iraq) to provide various products and ensure their continuity in Iraq.
And he warned that “the continued failure of economic policy will always contribute to relying on monetary policy, which leads to its destabilization and the failure of monetary policy, and thus the destruction of the country.” finished/25h
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