The decline in global food prices is starting to affect the local market
Amman Today
publish date 2022-09-21 16:47:37
The representative of the foodstuff sector in the Jordan Chamber of Commerce, Raed Hamadeh, confirmed that the prices of food commodities began to decrease locally after their levels recently declined in international markets.
And Hamada indicated during a press interview today, Wednesday, that the prices of vegetable oils, types of grains, legumes and canned goods began to witness a decline in the local market, while the prices of other items such as sugar and rice are still witnessing an increase in their prices in international stock exchanges.
Hamada justified the decline in the prices of basic food commodities for a number of reasons, foremost of which is the stability of demand for them in global markets, in addition to the large decline in freight rates and their return to their acceptable levels.
Hamadeh also stressed that the change in commodity price levels is subject to the equation of the global market represented by supply and demand, indicating that the Jordanian trader and importer are in the interest of lowering prices in order to stimulate markets and increase sales.
He said that the Jordanian merchant is interested in supplying foodstuffs and providing them in the local market, and this is one of the achievements that have been achieved during the last period, especially the beginning of the Corona pandemic crisis and the accompanying closures, as no shortage of any commodity was recorded during that period.
On price trends for the coming period, Hamada explained that global indicators indicate the start of global markets recovery from the Corona crisis, as evidenced by reports issued by the Food and Agriculture Organization of the United Nations (FAO), which confirm the decline in the prices of a basket of basic food commodities.
Hamadeh pointed out that the rise in food and basic commodities during the last period in global markets did not have a significant impact on prices in the local market as a result of the measures taken by the government related to shipping, warehousing and providing financing for import purposes at low interest rates and cooperation between government agencies in this regard.
And he indicated that the prices of goods within the local market are still much lower than that of neighboring countries due to the presence of stock among traders, in addition to the presence of strong competition between traders in the interest of citizens, as evidenced by the reduced offers that are announced and provide wide alternatives for single goods.
Hamadeh expected that there would be a decrease in the prices of food and basic commodities during the coming period, according to international reports, and the impact of which would be felt by citizens.
He stressed that the Kingdom’s stock of various food commodities is within reasonable levels, and import operations and supply chains are working continuously with ease and smoothness, pointing out that the Jordanian merchant works with high professionalism and has experience and is constantly seeking to find new sources of supply, and there is a focus on the countries with which the Kingdom has trade agreements Free to import and provide high quality goods.
Hamadeh reiterated that the merchant is not in his interest to raise prices in light of weak markets and a decline in the purchasing power of citizens, at a time when Jordan imports about 90% of its food needs.
He pointed out that the food sector in the Kingdom needs today to pump more liquidity and provide financing windows on easy terms to help importers and traders to sustain the operations of supplying the local market with goods and support the strategic food stock.
He called for the need to unify the work of the supervisory authorities and inspection teams, and pay attention to the local investor and give him incentives and benefits offered to the foreign investor.
He referred to the offers offered by malls and commercial centers on many food and basic commodities on a regular basis, which strengthened the real competition between workers in the sector, and this was reflected on citizens and consumers, stressing the need to reduce the sales tax paid by the restaurant sector that is not classified as a tourist from 16 to 8 percent, and the service allowance. 10 to 5 percent.
He explained that this sector includes about 500 establishments subject to sales tax, employing about 10,000 employees and workers, the majority of whom are Jordanians, stressing that granting them discounts will contribute to enhancing competition, reducing prices and revitalizing the sector.
He pointed to the great progress achieved by the Jordanian food industry, its high quality and competitiveness, and its entry into global export markets, indicating that this was reflected in the national economy and made the Kingdom an international success story.
Jordan imports food worth about $4 billion annually, part of which is raw materials for industry and the other is ready for consumption.
The food sector is one of the main important commercial sectors in the Kingdom, and it currently includes 14,000 companies distributed among importers, wholesalers and retail stores across the country, providing nearly 200,000 job opportunities, the majority of which are for Jordanians.
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Jordan News
Source : اخبار الاردن