UAE food prices head skywards

Basic food prices in the UAE have rocketed by 36%, with basmati rice expected to increase by at least a further 70% a newspaper reported Thursday.

UAE daily Gulf news said an expected shortage in rice would send prices sky-high, with Pakistani rice suppliers threatening to reduce exports if prices are not increased to match Indian products.

The price of cooking oil has risen by 80%, Indian mutton by more than 100%, while cooking gas has increased by 30%, the newspaper said, adding that residents had been forced to shop for groceries in more affordable neighbouring countries.

Meanwhile, Saudi Arabia said it would withdraw subsidies from rice importers if prices continue to increase without good reason.

Dubai economist Eckart Woertz told Gulf News weak dollar-pegged Gulf currencies had made imports more expensive. “Food price inflation is a global phenomenon, but GCC countries are particularly affected …. if they revalue, food imports will become cheaper”, he said.

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Posted by Amer, Dubai, UAE on Friday 15 February 2008 at 18:17 UAE time


This is to support that suppliers have helplessly resorted to reduce exports .As a leading dealer of vegetables in Dubai ,I can realise their pain whereas the general public has the wrong impression that they are greedy .They should know that under which circumstances traders are forced to take such steps but the root cause is always left unnoticed .
As an example ,recently a group of fruit importers in Dubai wanted to revise prices because the handling charges & associated difficulties caused by Dubai Ports is on a constant increase .Probably the authorities are unaware so I deeply request them to consider importer's problems just as they address the common man's problems .

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