A leaner Ramadan
For anyone involved in the food trade, Ramadan is usually the annual opportunity for increasing sales. This year, however, may be different, reports Mona El-Fiqi
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The devaluation of the Egyptian pound deeply affected the sales during the first week of Ramadan
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For consumers, Ramadan invariably means an increase in household expenditure, as more money is spent on yameesh, the dried fruits traditionally eaten in large quantities during Ramadan, and other luxury food products. For the government, Ramadan constitutes almost a state of emergency in which staples absolutely must be provided at reasonable prices. During the month of fasting, the national consumption of staples such as sugar, rice and flour actually doubles.
This year, the devaluation of the pound has been deeply felt by the hundreds flocking to the markets to buy the imported yameesh, the price of which has increased by 30 to 50 per cent compared with last year. In response to this, importers have bought in only a quarter of what they imported last year.
Mustafa Zaki, chairman of the importers division at the Egyptian Federation for Chambers of Commerce said that between January and September 2003 the value of yameesh imports was estimated at $10 million, compared with $40 million last year.
Zaki explained that importers opted to reduce their imports of yameesh, fearing that high prices might chase buyers away. According to Zaki, middle-class families, who represent the majority of consumers, cannot afford these price increases. And the market is already feeling the pinch. Importers and traders are complaining of a reduction in consumption.
The government has managed to successfully address one of the main the problems, namely price increases of the main staples. Rice, sugar, tea and food oil is available in government cooperatives at reasonable prices.
Economic pressures mean that some consumers are reluctantly buying fewer traditional purchases. Reda Mohamed, a housewife and a mother of four, said that because of the increased prices, she "bought only cheap kinds of yameesh like dates and peanuts".
