SOURCE: Saeed Bashar, The New Arab
Banana prices in Algeria have soared to record levels, reaching as much as 1,500 dinars (around $11.20) per kilogramme in some shops, as authorities step up inspections amid wider concerns over rising food prices and market manipulation.
The price of the imported fruit has nearly tripled from around 500 dinars (around $4) per kilogramme, although significant disparities remain between retailers.
Some large supermarkets are selling bananas for around 420 dinars (around $3) per kilogramme, albeit reportedly of lower quality, raising questions over how prices are being set and the margins being taken across the distribution chain.
The surge comes amid growing pressure on fruit and vegetable prices in Algeria, prompting the Ministry of Internal Trade and Market Regulation to intensify inspections of wholesale and retail markets.
Officials are examining stocks, product availability and storage conditions, as well as whether retailers are properly displaying prices and complying with commercial regulations.
Banana prices are closely watched in Algeria because they are often considered an indicator of wider agricultural produce prices.
The gap between prices has also drawn scrutiny of the various stages products pass through before reaching consumers, including imports, transport, storage, wholesale and retail.
Transport and storage costs, spoilage and profit margins can all influence the final price, but the scale of the current disparity has fuelled questions over how prices are being determined.
Tebboune vows action against market manipulation
Algerian President Abdelmadjid Tebboune has reiterated the government’s commitment to protecting consumers’ purchasing power, while largely absolving farmers of responsibility for recent price increases.
Speaking during his regular meeting with representatives of the national press, broadcast on Saturday evening, Tebboune said the government would investigate the factors behind market disruption.
“Most farmers are not responsible for the level prices have reached,” Tebboune said. “But everyone who has caused this must bear their responsibility, and we must preserve citizens’ purchasing power.”
The president said protecting purchasing power remained central to maintaining Algeria’s social model and stressed the need to tackle practices that place additional financial pressure on households.
Imports make banana prices difficult to predict
El Hadj Tahar Boulenouar, head of the Algerian Association of Traders and Craftsmen, told The New Arab that banana prices were particularly difficult to predict because the fruit is imported.
Unlike domestically produced fruit and vegetables, banana prices are directly linked to import volumes as well as storage and distribution conditions, making a steady supply to the market crucial to determining the final price paid by consumers.
Boulenouar said recent increases in fruit and vegetable prices more broadly were driven by several factors, including speculation, problems in storage and distribution networks and weather conditions that affected agricultural production.
An intense summer heatwave and fires in several provinces, particularly vegetable-producing areas, damaged crops, reducing supply and putting further pressure on prices, he said.
The government has also moved to cap potato prices after they exceeded 120 dinars ($0.90) per kilogramme in some areas.
Under the measure, prices were set at between 60 and 70 dinars ($0.45-$0.52) at the farm level and between 80 and 90 dinars ($0.60-$0.67) for retailers.
Boulenouar said the measure was intended to curb the recent surge and return potato prices to more stable levels, helping protect consumers’ purchasing power.
He said the intervention was likely to be temporary, with new supplies of potatoes and other vegetables from winter harvests expected to enter the market in the coming weeks, particularly from Mostaganem, Ain Defla and El Oued.
The additional supplies expected from late October into early November could lead to a noticeable fall in fruit and vegetable prices, particularly potatoes, he added.