[16/September/2009]


By: Ali Attawhami and Abdul-Khaleq al-Hindi

Translated by: Fadwa al-Ariki

Revised by: Mahmoud Assamiee

SANA'A, Sep. 16 (Saba) – The Holy Month of Ramadan, which witnesses an excessive in food consumption, additional burden added to poor Yemeni family. Talking away from the family's income, the law markets and the repercussions of the global financial crisis in return have imposed its rules.

There is a big and full direction from the citizen to specific types of goods required in Ramadan month. This thing leads to raise the prices of certain goods especially those which are needed in preparing Ramadan dishes.

Despite official statements affirming the formation of oversight committees for markets, some citizens have the fear of the ineffectiveness of the monitoring performance. And accordingly, fearing from the ghost of prices' raising of some Ramadan's goods, in addition to the fear of the monopoly of many traders for various goods needed in the Holly month.


One of the citizens, interviewed by al-Syasiah, said that the prices of this year are rather good, even though he found a rising in the cooking oils' prices. "As a result
of the global financial crisis, we suffer from a lack of savings so we try to rationalize our expenditure to overcome it ", he added.

Another one explaining his idea by saying" During the three past days I have observed during my shopping the goods prices varied from one market to the other, especially in some foodstuffs' prices such as rice and sugar mainly with the coming of Ramadan. "The sugar price raised from YR 5000 to 7200, and in our country if the prices raised it would never fall down again", he said.

Another point of view of a Yemeni expatriate who returned to Sana'a to spend this holy month with his relatives said, "The prices of this year are rather good in comparison with that of last year, and to me the prices are not that much high and the prices of some goods got down. Honestly speaking, I am an expatriate and the exchange rate differences in which I get my salary in comparing with its exchanging in Yemen are suitable for that I don't fell the price rises."

The officer in the showroom of "City Mart" market gave a clear idea of the situation by saying "The prices are lower than the previous year." According to him, the markets witness diminution these days as a result of the citizens' low income and purchasing power.

He also affirmed that the prices really got down this year and there were sales on cooking oils, creme caramel, as well as drinks. "What about the sugar prices it is due to the global markets," he maintains. "Though the previous year's prices were much higher than the current year, the average of turnout of the citizens decreased to 40 percent in this year."


According to the Household Budget Survey (HBS) for 2005-2006, carried out by the Central Statistical Organization, citizen's expenditure disbursement on food and drinks on the family level in 1998 was about 54, 97 percent only food got 52,2. Whereas in 2005-2006 the disbursement on food and drinks amounted 44,81percent, when food recorded only 43,4 percent. The statistic showed that the disbursement decreased from expenditure for 1998 one.


Economists refer the reason behind the low purchasing percentage of the citizen to the weakness of government control over the markets, the unjustified traders' manipulation of price as well as taking the chances of some seasonal months as Ramadan and Shawal to raise the prices in.


In this regard, the chairman of the Studies and Economic Media Center (SEMC) Mustafa Nasr pointed out with regret "many traders take advantages of weak government control over markets to increase prices according to their personal moods.


"The soaring prices in Yemen goes in the opposite direction of the nature of the global financial situation. "While the world suffers from depreciation due to the global financial crisis, our country's prices go higher, the thing which raises many
Questions," he said.

He noted that the increasing is not only in food price which is demanded in Ramadan, but also including a lot of products like textiles and others. Continuing, "It is clear from what have been mentioned before, there is a chaos in the market and every trader
sells in the way that suits him. Add to this some traders' monopoly of some main goods worst the situation.

As a reason for that, Nasr asked to apply the legal texts and decisions related to the declaration and unifying of goods price at least within the same city, expressing his regret on the market oversight committees which in turn need to be controlled on. Nasr added "For that the traders don't pay much attention to these committees and violating the markets norm price with cold blood"




"Not only weak role of oversight committees makes the traders play with the prices but also the poor performance of local councils' supervision, which fails to notice the traders cheating in the prices the thing which doubled the problem", according to Nasr.

He added "The Consumer Protection Association must work to carry out their role to stop this mess. One can't imagine that the manipulating in prices reached also main goods prices such as milk and cooking oil beside other goods, though they are locally produced and their prices are publicly known"

For his part, the director of Industry and Trade office Khaled al-Khawlani made clear " The office has the right to intervene and watch over only five main goods, wheat, sugar, rice, milk and flour, while the other goods prices are not subjected to certain prices."


He further explained that during the two past months, we noticed there is ascending in the sugar price, from YR 5000 to 7000.And as a result of that, several committees for investigating the issue behind price rises took purchasing invoices to assure sugar price at the global level as well as knowing the specified profit." Al-Khawlani continued, "Seven traders had been handed over to the Industry and Trade persecution to take the necessity procedures.


Al-Khawlani affirmed that the office obligates traders todeclare the price on goods, where the citizen himself will be the supervisor, declaring there is a list in the law issued recently,particularly two months ago, which now some shops started to apply
it.

"The office daily inspects the five main goods' prices and if it witnesses any ascending in the prices of each of these goods, then the committees' role begin to ask for the purchase invoices to see the reason behind the price rises. Accordingly and after studying the causes of price increasing the necessity procedures will be taken". Al-Khawlani said, adding "The citizen plays a big role to discontinue prices' increasing by informing against these traders".


Minister of Industry and Trade Yahya al-Mutawakil affirmed last Wednesday during chairing a meeting for field monitoring teams from all concerned authorities, the importance of tightens up the monitoring process on all markets. He also gave emphasis to follow-up the price volatility during Ramadan holly month as well as to take lawful actions with offending traders according to Industry and Trade's laws.


The Minister pointed out that the recent signs show the prices would not go up during Ramadan according to the traders and food importers' words for having enough food stocks from different goods.

The Minister al-Mutawakil noted the markets monitoring should depend on methodological and practical foundations, taking in consideration the public interest, ensuring the stability of commodity prices as well as providing goods with high quality and make them in reach for consumers.

Al-Motawakel talked about the orders of the president of Supreme Judicial Council (SJC) and the general attorney to general prosecutions and courts to apply deterrent penalties against offending traders who violate the law rules. The procedures would
work as an instrument to deter those traders and creating market equilibrium as well as obligating shops to follow the law texts formed to organize the economic activities, the Minister made clear.


He also asked the supervisors to be patient and to work with high competency and give more attention to bakeries, restaurants and shops selling Ramadan foodstuff, affirming the importance of the central operation room in Trade and Industry Ministry.

The Ministry along with all concerned oversight authorities will carry out an intensive campaign on markets to face the unsystematic trade, cheating, and others for seizing goods of unknown source and are not according to the specifications.



The Minister called the local council in the secretariat of the capital and of all the governorates' to carry their responsibilities in supporting the efforts of the Trade and Industry Ministry's offices in supervising markets.

He emphasized the media's role in spreading awareness for the consumers on their rights and roles in correcting any irregularities existed in markets.

The Industry and Trade Minister urged the consumer to assert their rights in getting high quality goods, confirm their source as well as reporting any expired goods. He concluded by saying, "The consumer is the goal and guarantee to success the oversight process on markets."