A bold experiment by the Ministry of Economy and Commerce in Qatar to tackle price fixing in the fruit and vegetable market has been declared an instant success.
Fruit and vegetables have traditionally been auctioned by wholesalers every morning to retail agents that then sell to the public.
The Ministry suspected that these retail agents were colluding to ensure they profited from artificially high prices, and have removed them from the process.
Retailers how buy directly from wholesalers and then compete for business with the public.
On the first day of the experiment, according to Doha daily newspaper The Peninsula, prices of fruit and vegetables had fallen by 10-15% in the Central Market.
“Soon after the wholesale traders (companies) received the loads from the agriculture producers and importers from outside Qatar, we could purchase the stuff directly from them. And there was a considerable fall in the prices, as compared to yesterday:” said Ismail, a long-time retailer at the Central Market, in an interview with The Peninsula.
Potatoes had fallen in price from QR28 per box on Sunday, to QR 16. Capsicums were down in price from QR26 to QR16. Apricots halved in price from QR16 to QR8.
The experiment is certain to be studied in detail by other Gulf countries that are suffering soaring prices for basic foodstuff. In the UAE, for example, the price of basic groceries has increased by 15% between 2006 and 2007.
Vegetable prices are growing faster than most other groceries, according to a
report by Money magazine
. Cauliflower increased in price from AED3.95 to AED5.25 per kilogram in co-operative stores between 2006 and 2007, while supermarkets charged an additional AED2.94 for the vegetable in 2007.
Lettuce increased by AED3.95 to AED5.25 per kilogram and potatoes rose by AED1.95 to AED2.60 per kilogram.
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