Ramadan: Prices Of Commodities Shoot Up With barely a few days to the end of the holy month of Ramadan, a survey of commodities prices in the market shows an astronomical increase. Cereals, beverages, fruit and other perishables record the highest price movements across the country. A visit to Mile 12 and Ketu markets in Lagos State showed that a carton of apple, which consists of 200 pieces, which was sold for N8,000 before the Ramadan now sells for N10,000, while the same quantity of water melon, which was selling for N1,200, is now selling for N2,000. The price of a bunch of bananas has increased from N800 before the commencement of the Ramadan fasting to N1,400 in most markets in Lagos. This represents an increase of 75 per cent, while the price of orange has also increased. The same trend was seen in the price of rice. A bag of rice which was N8,000 before the fasting period now goes for N11,000 while a bag of beans which sold for N20,500 prior to the fasting now sells for N26,000. Also, the prices of vegetables like tomato, pepper and onion from the northern part of the country have increased by over 100 per cent. Food vendors and eateries in the south-west region have reduced the quantity of what they sell since Ramadan began as they have recorded a decline in the number of customers that patronise them. While traders attribute the rise in the price of fruit and other food items to Ramadan, they are of the view that, with the Ramadan ending in a few days’ time, the prices of these food items might come down. A tomato trader at Mile 12 Market, Mr Moruf Adekunle, told LEADERSHIP that the increased prices reflect inflated costs that farmers charge during the holy month. He said the price of a basket of tomato has gone up by 40 per cent during this period. At the foreign exchange market, the official market has not recorded much impact from the fasting. It is only the Central Bank of Nigeria (CBN) policies like the Cash Reserve Requirement (CRR) and the weekly Dutch Auctions (wDAS) that has stabilised the forex market with many banks selling their dollars at the market. Bureaux de change (BDCs) have witnessed low- key activities too while the parallel market is almost at a standstill. Most of the traders who are Muslims close their shops during Ramadan period. According to Josephine Zekaryah of Klear Consult Bureau de Change, “When Ramadan is on, many don’t trade and this makes the market dull. Also many keep their dollars just before Hajj so that they can use it for shopping when they go on Hajj. In the last two weeks nothing has changed and the only thing that is impacting the dollar exchange rate is interventions by the CBN. Yesterday, the naira sold atN159.95 to the dollar at the interbank market while the dollar sold at N162.00 at bureaux de change and N163.00 at the parallel market. Aviation In the aviation industry, airlines said they were witnessing increased patronage. However, the airlines cannot attribute the increased patronage of their operations to the Ramadan alone as they also have customers flying with them who are not Muslims. According to Tony Usdiamen, Dana Air’s spokesman, passenger patronage has been picking up especially at this time. Dana Air introduced a special package for Muslims during the Ramadan period. Usdiamen said, “Passenger turnout is quite impressive” but added that he would not attribute the increase to the Ramadan alone because both Christians and Moslems were travelling on their flights. He said the airline received a lot of commendation from some of their customers who experienced their Ramadan offer, which involves packaging of fruit for the Muslim faithful. However, for investors in food and beverages, there has been a lull in business. A visit to the Food Court of the MMA2 Terminal building, Lagos, showed rows of empty seats. The Food Court usually witnesses impressive turnout of people, travellers and sometimes visitors with many of them enjoying the culinary cooking of the many fast food centres located at the court. One of the proprietors of a food stall located at the Lagos Airport confirmed to our correspondent that business has been slow during this period. She said even though she reduced the quantity of food she normally prepares on a daily basis, most of the time she finds it difficult to completely sell all the food prepared following reduced patronage. At the Balogun Market in Lagos Island, Ramadan fasting impacted negatively on sales. According to a female trader who deals in textiles, bags and shoes (she didn’t want her name in print), the fasting is making traders record low patronage. For recharge card sales, vendors are having a boom during the evenings, after the break of fast by the Muslim faithful. A card vendor, Mr Seyi Adebayo, told LEADERSHIP: “I record more of my recharge cards after the break of fast by Muslims in the evening as they had to call their family and friends.” In Yola, Adamawa State, the demand for cereals also witnessed an increase. LEADERSHIP checks in Jimeta Main Market, Yola, showed that the demand for foodstuff has increased as residents buy in quantity. Speaking on reasons for the increase, Malam Yunusa, a dealer on grains in the market, said: ‘‘The fact is that people consume a lot of Kunu, which is made from either millet or guinea corn; during the fast they tend to buy more. Apart from that, a lot of people buy foodstuff and give to the poor.’’ Reports from Wunti Market in Bauchi are not different. Mallam Danlami, a resident of Bakin Kura area of the state capital, said: ‘‘The thing is that Bauchi is predominantly a Muslim state and the people are fasting. So the demand will be high as more massa, kuno, and even tuwo are eaten. People share food and eat together, and a lot of people save for the Ramadan fast.’’ Jalingo Market also has a story to tell as sellers of grains in the market are having a field day. According to Kassimu, a trader in the market, the joy of the traders knows no bounds : ‘‘The patronage is high. Ramadan period is a blessing and people usually enjoy sharing with one another during the fast. The rich, who are Muslims, ensure that they perform their duties of providing for the needy; as such, they buy a lot of grains and give out. Apart from that, people eat different kinds of food during the fast, so they buy a lot of food items from us. Market surveys conducted in and around some markets in Abuja also revealed the same trend. There was a noticeable increase in the prices of beverages alongside some perishables such as tomatoes and fruit. Inside Wuse Market, some fruit vendors told our correspondent that they pay about 40 per cent more per every fruit during this period, which invariably forces them to sell at a higher price in order to make profit. “We should not be blamed for hiking prices as this is the only time of the year people will pay more. The cost of transporting these commodities to the market has also gone up, so we can’t help the situation,” Aminu Abubakar, a fruit vendor, told LEADERSHIP. Aminu added that food prices are also soaring because Muslims were stocking traditional foods for the evening feasts that follow daily Ramadan fasts. A small basket of tomatoes which sold for between N1,200 and N1,500 now goes for between N2,000 and N2,200; a basket of pepper which was between N500 and N700 now goes for N1,000; while a basket of onions which was being sold between N700 and N1,000 now goes for between N1,300 and N1,500. A 50-kilogramme bag of rice was sold at N8, 000 but is now N9, 500. A small bucket of oranges goes for between N300 and N450 as against its former price of N200 and N300, while a bag of oranges now costs between N5,500 and N6,000 as against N4, 000 it sold for two months ago. At Masaka Market in Nasarawa State, the price of Irish potatoes which was sold for N500 a month ago is now going for N800 a basket. There was also a sharp increase in the prices of some: a medium-sized water melon which was formally sold for N300 is now N400, while one dozen of water melon rose from N3,500 to N5,000. Similarly, a dozen of sizable pineapples which sold between N1,200 and N1,500 now sell for between N1,500 and N2,500. The prices of perishable goods like tomatoes and pepper have also increased. A small basket of tomatoes which sold N3,000 now costs N5,000. A bunch of plantain is now sold for N1,200 as against the former price of N800 A 25-litre tin of groundnut oil is now selling for N7,000 as against the former price of N6,000, while a tin of powdered milk of 900 grams which was N1, 700 is now sold for N1,800.
Posted on: Mon, 05 Aug 2013 03:08:51 +0000
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