Another price rise in store for Qatar consumers - Gulf Times today

by GT Business Reporter

Consumers, hard-pressed to make ends meet due to sky-high rents and mounting living expenses, will have to shell out even more for milk powder and some other daily consumables from next month.

Makers of some fast-moving milk powder brands are effecting a price rise of up to 21% on a 2.5kg container from next month, a Gulf Times survey has found.

A 2.5kg container of a popular milk powder brand will cost QR55 from June 1 instead of QR45.75 now. Another popular brand will be selling at QR56 (for 2.5kg) from next month in place of QR49.50 now.

A 400gm pack of baby food has risen to QR23 from QR22 a few days ago. A 500gm pack of sliced cheese now carries a price tag of QR12.50 against QR9.75 a few days ago.

Market sources yesterday said the price of fresh milk might also go up consequently. Other dairy products could see similar increases in the coming days.

Although triggered by shortage, egg prices have skyrocketed in the local market in the last few days. A tray of 30 eggs (imported from India) which was available for QR10, is now priced at QR16. A carton (of 12 trays) now costs QR165 instead of QR85 until a few days ago.
Local eggs are still costlier! A carton of Qatari eggs now carries a price tag of QR170. In early 2006 this stood at QR90.

In the last few days the price of a premium Basmati rice brand (from Pakistan) has gone up to QR102 from QR89 on a 40kg bag. A 20kg bag of premium Indian Basmati rice costs about QR105 now. In December it was available for QR80 at most supermarkets and groceries across Qatar, sources said.

Thousands of expatriates from the Subcontinent, especially from Pakistan and North India, prefer Basmati rice to other varieties.
Sugar price has almost doubled for a 50kg bag. Last year it was priced at about QR68 and now one has to pay QR120 for the same quantity.

Various varieties of bread are now Dh25-50 dearer for packs of different sizes. A fast-moving corn oil brand now costs QR13.25 for 2 litres against QR11.25 a few days ago. Tea and coffee have also seen an increase in their prices in the recent days, sources said.
The prices of vegetables and fruits are also increasing considerably, inquiries show.

Their prices have gone up by almost 40% in the past few weeks.
Some retailers said trading in imported fruit and vegetables was now a loss-making proposition.

“This highly perishable stuff cannot be kept for long despite having good chillers. I sell them incurring heavy losses, because of customer demand. Many customers prefer shops that sell fruit and vegetables as well. Simply it is not worthwhile dealing with this stuff anymore,” a retailer said.

Cited as a cascading effect of the spiralling prices of essentials, some cafeterias and juice stalls around the city have also revised the rates of sandwiches and burgers, which are in great demand. A filafil sandwich now costs QR2.50 against QR2 earlier. A burger costs QR4 instead of QR3 earlier.

Retailers list several reasons for the price spike. They include higher freight charges, warehousing and rental rates and higher wages. The devaluation of dollar, to which the riyal has been pegged, is cited as another major reason for costly imports.
The general manager of a leading supermarket chain said: “The price rise could have been even greater had not for our low-profit margin. Normally, our profit margin is between 2% and 3%. This is low if one takes into account the huge increase in our operational costs.
“The huge increase in rents is more than we can absorb. In addition to the zooming rents, which in some cases were up to 100%, the warehousing charges have also shot up sharply in the last one year or so.”