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Ramadan in Tunisia.. The disappearance of basic commodities from the markets, and experts link the phenomenon to price ceilings

Tunisia –During the first days of the month of Ramadan, the markets in Tunisia witnessed relative stability in the prices of some vegetables and grains, but this stability was accompanied by the disappearance of a number of basic commodities from the markets, in a phenomenon that economic experts attribute to the price cap policy adopted by the government.

According to those who follow economic affairs, administratively setting prices without taking into account production and supply costs often leads to a decline in supply within the regulated market, which forces a portion of goods to move to the parallel market, where they are sold at prices higher than the official prices.

Among the most prominent products that have been observed disappearing from Tunisian markets is jalbana (peas), which is a winter vegetable whose demand is increasing during this period. The central market in the capital, Tunis, which is the largest market for vegetables and grains in the country, recorded the absence of this substance at a number of points of sale.

Bananas, which Tunisia relies heavily on imported from abroad, have also disappeared from regulated markets, and are no longer available except from some street vendors. Merchants confirm that the quantities offered often come through smuggling, which led to the price of a kilogram rising to about 22 Tunisian dinars, the equivalent of more than $7.

The professor of economics at the Tunisian University, Reda Al-Shakandali, believes that the scarcity of some materials witnessed in the markets during Ramadan is not an accident, but rather a direct result of the policy of capping prices without taking into account the costs of production and supply.

The expert explained that setting a price lower than the real cost puts the producer or farmer in front of two options: selling at a loss or withdrawing from the regulated market and heading to the parallel market, which ultimately leads to a shortage of supply and higher prices outside the official frameworks.

Al-Shakandali pointed out that bananas, as an imported product, are affected by several factors such as the exchange rate and shipping costs, and when their price is capped at less than their true cost, the supply declines and disappears from the official markets before appearing in the parallel market at high prices.

For his part, political analyst Abdul Razzaq Al-Khalouli considered that the policy of capping prices is not an economically effective solution, pointing out that such measures often lead to chaos in distribution and the transfer of goods to the parallel market, especially in light of the weakness of market control mechanisms.

Observers believe that the solutions may lie in improving market monitoring and increasing supply through imports or supporting local production, instead of relying on administrative pricing, which may upset the balance of supply and demand.

On the other hand, the Tunisian Ministry of Trade and Export Development confirms that it has taken measures to control prices during the month of Ramadan, as it announced earlier the maintenance of the system of capping the maximum prices for a number of consumer products, in addition to setting profit margins in the various distribution routes with the aim of reducing price fluctuations during the high consumer season.

Source:“My press”

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