But consumers will likely “face fewer problems” during this year’s Ramadan than in previous years, sector representatives told Sunday’s Zaman. This year’s Ramadan begins on Aug. 11 and ends on Sept. 9, marking the beginning of the Muslim festival of Eid al-Fitr.
The month of Ramadan traditionally sees a noticeable increase in demand for food in Turkey as people celebrate the iftar (fast-breaking meal) with the largest variety of foods possible. It is also celebrated as a time of giving, with millions of free iftar dinners served by municipalities in addition to an outpouring of aid to the needy from municipalities, associations, businesspeople and everyday citizens across the country.
It is a known fact that some dealers attempt to charge excessive prices, trying to benefit from this increased demand. Observers say this should not happen this year since the Turkish market has an abundance of produce, while producers are expecting a good yield during the approaching harvest.
Turkish Retailers Federation President Şeref Songör tells Sunday’s Zaman that they do not expect a significant rise in food prices ahead of Ramadan, underlining that the market currently has enough inventory to meet the anticipated increase in demand during the holy month. “I do not see a reason for price increases, particularly in produce and legumes.” Songör has some reservations, however. According to the union head, customers could face increases in red meat prices. Recent developments in the red meat market prove he might be right. Caused by a growing shortage of red meat in the domestic market, the Turkish red meat market has been experiencing unprecedented price increases for the past few months. Observers argue problems in the Turkish red meat market will remain unsolved during Ramadan despite government efforts to import livestock and address the issue. Market representatives have already warned consumers about the threat of skyrocketing prices in red meat.
Unions to crack down on unscrupulous merchants
Although current market indicators show that prices may remain the same during Ramadan, consumer unions remain on alert just in case. Price gouging is known to mostly happen in produce and legumes ahead of Ramadan. Consumers Union President Nazım Kaya tells Sunday’s Zaman that they have taken the necessary steps to avoid attempts at opportunism prior to Ramadan. Noting that they’ve started following market prices closely, Kaya says some dealers may increase prices excessively, adding, however, that they have faith their efforts “will prove successful in dissuading companies from pursuing dishonest tactics.” “We have already started confirming prices for produce and legumes along with other products in the market. … We will compare the prices that we have determined and the prices set by sellers in the market one week ahead of the holy month to uncover dishonest merchants,” he explains. Kaya calls on the Ministry of Agriculture and local administrations to cooperate with them to this end.
Gift certificates replacing Ramadan packages
Federation of Food and Drink Industry Associations of Turkey (TGDF) President Şemsi Kopuz argues that more people are choosing gift certificates over Ramadan packages this year than in the past. “The habit of buying packages each Ramadan is gradually being replaced by distributing gift certificates to the needy. People find it easier this way. … The price of products such as tea, legumes, oil, meat and milk products -- which are usually in Ramadan packages -- would climb due to increased demand during Ramadan, but there is no such price hike pressure in the market this year,” he explains. Kopuz argues food prices may even be lower this Ramadan when compared to last year.
According to Mehmet Reis, the owner of Turkish legume producer Reis, who spoke in a phone interview with Sunday’s Zaman, consumers do not need to worry about extra price hikes in food, as he notes that the market has enough capacity to meet demand. “Prices may even drop during Ramadan,” he added, drawing attention to a current shortage in demand. Reis also joins Kopuz in his observation that gift certificates are replacing packages.
“In recent years people used to flock to dealers and shopping malls to order foodstuff packages two months ahead of Ramadan. Things have turned out differently this year. … There is an extraordinary stagnation in the market, and new orders have almost ceased,” he explains. Charity organizations, municipalities, associations and businesspeople in Turkey distribute packages of foodstuffs -- known as Ramadan packages -- for the needy each Ramadan. People can also buy these packages for their family’s needs because they are relatively cheaper to buy than buying the food as separate items; shops also offer extra promotions for Ramadan packages. “I hope dealers will compensate for this loss ahead of Ramadan. … I hear some are even considering reducing prices to attract customers,” Reis added.
One thing Reis warns consumers to be on the alert for while buying Ramadan packages is package sizing discrepancies because the products may be smaller in size and of lower quality than stated on the wrapped packages.
Meanwhile another issue that consumers were also worried about was whether the price of bread would increase ahead of Ramadan. Bread in Turkey sees a higher increase in demand than any other product during Ramadan. Turkish Bakeries Federation President Halil İbrahim Balcı recently reassured customers. He said, as early as last week, that his union does not expect any hike in the price of bread this Ramadan. According to Balcı the price of bread will hover around the price levels of 2008. Underlining that they have warned bakeries not to engage in price gouging ahead of Ramadan, Balcı said the price of a kilogram of bread would be TL 2.5 while the price for a kilo of pide (flat bread coated with egg and sprinkled with sesame seeds) would be TL 3.5, the same prices as in Ramadan 2008. The number of bread loaves produced in İstanbul alone during Ramadan exceeds 15 million, plus around 5 million pide.
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