Vegetable prices plunge in Abu Dhabi

Drop partly due to weakening demand for some products following a sharp rise in prices ahead of Ramadan

Vegetable prices declined sharply in Abu Dhabi on Tuesday despite strong demand during the holy month of Ramadan, a newspaper said on Wednesday.

Alkhaleej said its reporter who visited the main vegetable market in the capital found that the prices of many vegetables had dipped by between 25 and 50 per cent in contrast with earlier expectations about price increases.

“The decline was in contrast with the sellers and dealers view that prices could increase because of lower global production this year,” it said.

According to the paper, the price of cucumber tumbled by nearly half to around Dh4 per kg on Tuesday from Dh8 on Thursday.

The price of squash slumped from Dh10 to Dh7 and green pepper from Dh8 to Dh5. There was also a moderate decline in the prices of eggplant, lemon, potato and garlic while those of parsley and mint stabilised.

Alkhaleej quoted sellers as saying the price drop was partly caused by weakening demand for some products following a sharp rise in their prices ahead of Ramadan.

“This has led to an increase in supply and stocks over the past few days and this in turn has forced sellers to push prices down to avert losses,” it said.

On Tuesday, the Ministry of Economy said it had turned down a request from farm suppliers to increase prices amid resurging global food crisis.

Vegetable and other food vendors in Abu Dhabi said on Wednesday ministry inspects had been visiting the market almost daily to ensure dealers do not violate instructions to stick to prices.


source:  http://www.emirates247.com/news/emirates/vegetable-prices-plunge-in-abu-dhabi-2010-08-18-1.280677

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