(MENAFN- Khaleej Times) The Fish Market located in the heart of the Capital is a favourite shopping place frequented by the middle class consumers in large numbers everyday in anticipation of competitive prices.
Abu Dhabi: Shopkeepers selling fruits and vegetables at Abu Dhabi’s Fish Market located in Madinat Zayed area have hiked the prices by up to 20 per cent in a bid to make some quick profits on the occasion of Eid Al Adha.
Residents shopping on the eve of Eid Al Adha at a mall in Abu Dhabi on Friday. — KT photo by Nezar Balout
The Fish Market located in the heart of the Capital is a favourite shopping place frequented by the middle class consumers in large numbers everyday in anticipation of competitive prices. There are around 100 shops that sell fruits and vegetables while over a dozen shops sell beef mutton and chicken. There is a separate market for seafood in the market. The Abu Dhabi Municipality also runs a fruit and vegetable shop.
Generally consumers accept there could be a slight increase in prices on the eve of major festivals like Eid Al Adha but customers at the market were hugely disappointed by the high prices without any economic justification a consumer said. The prices were much higher than those at the nearby Abu Dhabi Cooperative Society which is located in the Madinat Zayed Shopping Centre.
The price of green beans was Dh14 a kilogram at the Fish Market which was Dh2 more than the price at leading supermarkets in the same locality. Shopkeepers were also charging Dh1-2 more for egg plants cabbage and other vegetables. Similarly banana pomegranates apples pears and other fruits cost Dh1-3 more per kilogram than in leading supermarkets.
When Khaleej Times asked a shopkeeper why he is selling the vegetables at higher prices he said the demand is high because of Eid.
To make food items used daily available at affordable prices the Ministry of Economy launches campaigns during festivals offering substantial discounts on them but these campaigns never reach shops in certain localities said Mohammed Ghafoor a consumer. During Ramadan the prices of food items were slashed. A majority of shoppers go to souqs and markets where sometimes the prices could be high he said.
Last week the ministry in association with the country’s major retailers announced a mega promotion campaign offering 1500 items. The number of items was increased many times to include for the first time electronics mobile phones readymade garments and various others.
The idea behind the campaign which will continue till October 10 was to club together Gitex Shopper in Dubai with the Eid Al Adha promotions and create a month-long shopping festival across the country a sales executive at a retail chain said.
The UAE’s food inflation depends on the price trends in the countries where these vegetables fruits and other items are produced. If prices there are affected by floods or other natural calamities or currency parities then you should expect a rise here an importer said.
However there is no justification for hiking the prices to maximise profits especially on the occasion of Eid Al Adha he said.
Inflation in the country rose to 2.4 per cent in the month of August on the back of higher housing rents. However the inflation in the food and soft drink group which contributes 14 per cent to the consumer expenses rose 2.06 per cent on an annual basis according to the UAE’s Statistics Bureau.
Interestingly in July a price rise in the beverage and tobacco group caused the consumer price index to climb to 2.33 per cent. The increase in the prices in this group by 0.90 per cent was a direct result of 100 per cent hike in the tax on tobacco in May this year. Analysts polled by Reuters in April forecast average inflation in the UAE to reach 1.9 per cent in 2014 and 2.5 per cent in 2015 from 1.1 per cent in 2013 which was the highest level since 2009.
— haseebkhaleejtimes.com