Red meat, tomato prices rise as import tariffs bite

[6ly410]

Red meat, tomato prices rise as import tariffs bite 

By Rudaw 1 hour ago

390Views

         

The Kurdistan Region depends on imports to meet local demand. File photo: Farzin Hassan / Rudaw

ERBIL, Kurdistan Region – Import duties on red meat and tomatoes from Iran and Turkey have squeezed traders in the Kurdistan Region, causing prices to skyrocket in recent weeks. 

Umed Qadir, a butcher from Sulaimani, had already seen the price of red meat rising. High tariffs at the Region’s border crossings, however, have made matters worse.

“The price of red meat for butchers’ shops has increased. In addition to that, there are also tariffs on them once they are imported,” Qadir told Rudaw.

“The solution lies with the [Kurdistan Regional] government. The government should engage in talks with border crossing authorities forcing them to remove tariffs on imports.” 

Tomatoes, too – a staple of Kurdish cookery – are feeling the squeeze. 

“We are calling on the Kurdistan Region through their channels to allow the imports of [livestock and tomatoes] to resume,” Haji Sarwar, head of the Sulaimani Fruit and Vegetable Market, told Rudaw, referring to new controls on imports from Iran and Turkey. 

Prices will rise again, if politicians fail to act, he warned.

These price hikes are not felt evenly across the Region, however. One kilo of red meat has risen on average by 500 IQD ($0.42) in Erbil and Duhok. But in Sulaimani, it has skyrocketed by as much 2,000 IQD ($1.68). 

Shalaw Jamal, head of the Sulaimani Agriculture Department, identifies three reasons for the price hike.

“The first reason is that we are nearing the spring, during which red meat is consumed more than any other thing,” Jamal said.

“The other main reason is the unification of customs duties between Iraq and the Kurdistan Region [in mid-February] leading to added tariffs on imported meat products. This has directly resulted in the price hike in local markets,” he said. 

Thirdly, Iran and Turkey have recently taken strict measures to stop food smuggling into the Kurdistan Region – eating up the once thriving black market trade.

“Unfortunately, until know, we have not been able to meet our domestic demands thus we are forced to seek imports from other counties,” Jamal added. 

A history of cheap imports from abroad has crushed local production. This is evident in the markets of Duhok.

Akram Sarki, a local grocer in Duhok, said the price hikes can also be blamed on “the deteriorating state of farming in the Kurdistan Region.”

“We have nothing to depend on for our own domestic use. What is here in our markets come from other countries,” Sarki told Rudaw.

He called on the regional government to urgently support local farming. 

Meanwhile in the regional capital Erbil, Ibrahim Ozaim, a member of the Erbil Fruit and Vegetable Market Council, warned that unless the price hikes were addressed, consumers would be the ones to suffer. 

Ozaim said US sanctions imposed on Tehran have caused Iranian traders to cut its export of tomatoes, causing the price rise. 

“It is just Iranian and Turkish tomato sold and bought in the Kurdistan Region,” he said. 

Bolstering local farming would help protect the Region’s markets and consumers from temperamental trade conditions, he said. 

Ozaim is not optimistic, however. 

“The KRG does not support or encourage our farmers,” he said. http://www.rudaw.net/mobile/english/business/030320191

[navira]

Yup, it's  gonna bite them big...very big. Let's go CBI

[md11fr8dawg]

That tells you right there that if they cared about their people, they would do something about their shiitey currency! BUT NOOOOO, more foot dragging and can kicking. SAD group of leaders. Kind of like our Congress hmmm??

Edited March 3, 2019 by md11fr8dawg

[10 YEARS LATER]

2 hours ago, navira said:

Yup, it's  gonna bite them big...very big. Let's go CBI

 

Getting real interesting, huh. Personally, I'd like to see some more of these articles . . . " in the coming days "

 

Me thinks the page has turned in this investment. Something new has been added - Prices rise as Import tariffs BITE - and will only become much worse if these Career Criminal Politicians continue down this path of foot dragging and never ending delays.

 

Just no accounting when it comes to GREED with these miscreants.

 

You didn't have to be a Rocket Surgeon to see this one coming. 

 

 

[Floridian]

I hope the people start demonstrating in the streets.

Where is Sadr when you need him?

[ChuckFinley]

11 minutes ago, Floridian said:

I hope the people start demonstrating in the streets.

Where is Sadr when you need him?

Guy has pulled a magic show. Time for him to step up. 

[navira]

We all have to remember that CBI is responsible for price stability n exchange rate. Now would be a good time to balance the offsets as a result of these taxes. I don't know how much of the inflation they can manage before pulling the trigger...but one thing for certain, the merchants n the people can't hold this much longer....I say revolt now if we have to force this dang CBI to increase the purchasing power. Cheers all

[Laid Back]

Higher prices in food and services will trigger inflation.

 

Inflation will put pressure on CBI monetary policy.

 

Go CBI

Go RV

Go purchasing power

Go $1:1

[10 YEARS LATER]

17 hours ago, Floridian said:

I hope the people start demonstrating in the streets.

Where is Sadr when you need him?

 

Binging on Falafel 🥙 Scotch & Belly Belly Dancers 

[Floridian]

19 minutes ago, Laid Back said:

Higher prices in food and services will trigger inflation.

 

Inflation will put pressure on CBI monetary policy.

 

Go CBI

Go RV

Go purchasing power

Go $1:1

 

Laid Back, do you think inflation due to tariffs will trigger an RV?

How does that relate to the list of things that you feel still have to be done before they can RV?

 

Edited March 4, 2019 by Floridian

[Dinarrock]

Yes that plus the Basel 3 requirements that start on April 1st sure seems like someone is trying to force an increase in purchasing power to me!

[miquel]

2 minutes ago, Dinarrock said:

Yes that plus the Basel 3 requirements that start on April 1st sure seems like someone is trying to force an increase in purchasing power to me!

Thanks Dinarrock.  Can you clarify what the april 1 requirements are?

[Floridian]

8 minutes ago, Dinarrock said:

Yes that plus the Basel 3 requirements that start on April 1st sure seems like someone is trying to force an increase in purchasing power to me!

 

I read the latest article on Basel III.  It does not say anything about April 1st.

It says "in the future".  Where did you get the April 1st date?

[Floridian]

Here is an article posted 11/18/2018:

 

https://www.bis.org/press/p181004.htm

 

The final Basel III minimum requirements are expected to be implemented by 1 January 2022 and fully phased in by 1 January 2027

[psdon]

But they didn't say 

[Laid Back]

21 minutes ago, Floridian said:

 

Laid Back, do you think inflation due to tariffs will trigger an RV?

How does that relate to the list of things that you feel still have to be done before they can RV?

 

Thanks for your input Floridian,

Price increases on particular goods are not inflationary unless there is no substitute and people are forced to spend what they otherwise might have saved. Most of the increased prices of the tariffed goods represent a shift away from non tariffed goods to pay the increase. That assumes that everyone lives from hand to mouth. To the extent that the tariffs do not cause reduced spending on substitutes as people use savings to pay the higher prices then to that extent there will be actual inflation; an erosion in the value of the currency.

I believe inflation due to tariffs could trigger an RV in the long run unless the CBI

- increase interest rate 

- increase the amount of money banks are legally required to keep on hand to cover withdrawals.

- reduces money supply 

 

Go CBI

Go new monetary policy 

Go RV

Go $1:1

 

 

[Floridian]

7 minutes ago, Laid Back said:

Thanks for your input Floridian,

Price increases on particular goods are not inflationary unless there is no substitute and people are forced to spend what they otherwise might have saved. Most of the increased prices of the tariffed goods represent a shift away from non tariffed goods to pay the increase. That assumes that everyone lives from hand to mouth. To the extent that the tariffs do not cause reduced spending on substitutes as people use savings to pay the higher prices then to that extent there will be actual inflation; an erosion in the value of the currency.

I believe inflation due to tariffs could trigger an RV in the long run unless the CBI

- increase interest rate 

- increase the amount of money banks are legally required to keep on hand to cover withdrawals.

- reduces money supply 

 

Go CBI

Go new monetary policy 

Go RV

Go $1:1

 

 

 

Thanks Laid Back.

I do assume that most people in Iraq live "hand to mouth" and don't have a lot of savings.

Maybe I'm wrong.  

[chris2028]

2 hours ago, navira said:

We all have to remember that CBI is responsible for price stability n exchange rate. Now would be a good time to balance the offsets as a result of these taxes. I don't know how much of the inflation they can manage before pulling the trigger...but one thing for certain, the merchants n the people can't hold this much longer....I say revolt now if we have to force this dang CBI to increase the purchasing power. Cheers all

I absolutely agree. I've said a few times now that once these tariff's hit and taxes rise slowly but surely it would begin to affect the citizens and merchants. Hopefully they begin to protest and demonstrate and put the heavy pressure on the CBI to do something about it. 

[cranman]

I think their protest will have as much effect as protest here in the states do.  I am really starting to think that there may never be a lop or an RV.  Just a float that may or may not happen soon.  Hell, maybe that won't happen either.  15 years of watching this country argue, drag there feet and borrow money from every other country makes you wonder why they haven't done anything with there currency yet.  

 

I realize that what some articles say, and the news, looked positive for awhile.  Then as always we hit a stall.  Tariffs look like a good reason to raise the value of the currency but they won't.  They should but they won't. 

 

We may be watching this for awhile longer no matter what happens.  This is a middle east country that could really care less about the individual people.  Like I tell people in certain situations like this: Crap in one hand and wish in the other.  Let me know which one fills up first.

 

Trying to stay positive but starting to wonder if it will always be the same.

[3n1]

1 hour ago, Floridian said:

 

Thanks Laid Back.

I do assume that most people in Iraq live "hand to mouth" and don't have a lot of savings.

Maybe I'm wrong.  

 

here are a few current pics around iraq im sure some live poverty like any country and some do not ......

https://www.skyscrapercity.com/showthread.php?t=1093703&page=249

[kwg]

Simple, what Laid Back said.

[DoD]

cranman, totally agree, I’m thinking if they raise the purchasing power on the Dinar it won’t be because of the poor citizens but because of some outside pressure or the Iranian sanctions. 

Still to much corruption in Iraq, the daily auctions are proof of that....

[chris2028]

@3n1 I had wondered in the past if the average Iraqi citizen was actually concerned about their purchasing power like we seem to believe they should be. I know many of them were not alive when during the last regime and have no idea what they may or may not be missing out. Looking at the pictures on the link you uploaded shows, to me, a country that seems to be moving in the right direction with normal day to day operations. Its really hard to gauge what really is going on there from way over on this side of the pond. 

[Floridian]

46 minutes ago, 3n1 said:

 

here are a few current pics around iraq im sure some live poverty like any country and some do not ......

https://www.skyscrapercity.com/showthread.php?t=1093703&page=249

 

Well, it looks pretty good.  Guess I can stop praying for these people and pray for people that really need it.

[NoviceInvestor]

33 minutes ago, chris2028 said:

@3n1 I had wondered in the past if the average Iraqi citizen was actually concerned about their purchasing power like we seem to believe they should be. I know many of them were not alive when during the last regime and have no idea what they may or may not be missing out. Looking at the pictures on the link you uploaded shows, to me, a country that seems to be moving in the right direction with normal day to day operations. Its really hard to gauge what really is going on there from way over on this side of the pond. 

I agree.. Iraq is rebuilding with a generation of youth that accept how the live as the norm and past generations who are grateful that they have survived the years beyond the previous regime..  jMO