Vegetables, fruits' high prices: real crisis to citizens in Gaza

With the announcement of Israel's closure of Keram abo Salem crossing, the prices of vegetables and fruits in Gaza Strip have increased, affecting the purchasing power of citizens, while an economic analyst said that the most serious reason for the rise in prices is the traders’ control of the offered quantities and prices, and the Agriculture's Ministry pointed out that it will seek to restrict prices with indication to the difficulty of this step.

Vegetables, fruits' high prices: real crisis to citizens in Gaza
12 July, 2018   08:32

MUSTAFA AL-DAHDOUH / GAZA

In this context, the citizen Muhammad al-Sharif, a resident of Gaza City, said that he went out to buy vegetables and fruits for his six children, but was surprised at the high prices.

The price per kilo of tomatoes was sold at 2 Shekels, but now the price has risen to 5, which is more than double. "As prices are rising, we can no longer afford to buy all the household items, what worsened the situation is the high rate of unemployment and poverty in Gaza Strip society, in addition to the non-payment of salaries of employees in Gaza Strip.

The high and low prices of vegetables depends on a number of factors, the most important of which is the export of many items that are the basis of the domestic market abroad, and the export operations come in conjunction with the end of the agricultural season, which usually suffers from a deficit in quantities produced, compared to the season.

"The Agriculture's Ministry in Gaza Strip does not object to the export of vegetables outside Gaza Strip, Jordan, al-Defa al-Garbia, Israel and Europe," said the merchant Mohammed Abu Jumiza.

Today, with the closure of the crossings, traders will pay the quantities of vegetables in the local market, but there are insufficient quantities to fill the deficit and could be completed after at least three months with the start of a new agricultural season."

Trader Majid Mansour, the owner of the central vegetable markets in the central province, said that the local market needs large quantities of vegetables "tomatoes, cucumbers, potatoes and lemon" as a result of the decrease in quantities offered in the local market.

He stressed the need to combat the traders' monopoly of prices, by offering local goods at lower prices to force importers to reduce prices in commensuration with the purchase ability of citizens.

In turn, the General Director of marketing and crossings in the Agriculture's Ministry in Gaza, Tahsein al- Saka, that the closure of the crossings will have a significant impact on the prices of food commodities, stressing that the ministry will work to control prices in order not to exploit the citizens.

Al-Sakka pointed out that the fruits will be imported from Israel mainly and the closure of the crossings constitutes a real crisis and causes the rise of prices.

The economic analyst and international financial advisor al-Hasan Bakr said that the price of goods is determined by the quantities displayed in the market and demand rates. He pointed out that the recent increase in vegetable prices is due to the decrease in quantities offered in the local market due to the export of vegetables in large quantities outside the country and the decline in production quantities at the end of the agricultural season.

He pointed out that the lack of economic protection of the farmer in the event of loss at the low prices within the domestic market created crises in which the citizen pays the costs, either because of high prices or decline, and the same applies to fruits, which will see a decrease in supply quantities compared to demand and this will lead to higher prices.

The other reason for the rise in prices, which is the most dangerous according to Bakr is due to the control of the main traders in the quantities displayed in the domestic market, expressing concern about Israel's closure of the crossing, indicating that it could lead to a total collapse of the economic system in Gaza.

H/S

ANHA