Produce Prices not dictated by supply and demand alone — senator

market
(File photo: Ameer Khalefih/Jordan News)
AMMAN — Head of the Senate Agriculture and Water Committee Akef Al-Zoubi said that multiple factors control the prices of vegetables and fruits, and the matter is not determined by the supply and demand mechanism only. اضافة اعلان

“We make a mistake when we say that supply and demand determine the prices of vegetables and fruits, because in this way we acknowledge that the market is free, but it is not,” he said.

According to Zoubi, “the market structure and composition also plays an important role in setting prices,” explaining that “the greater the number of producers and intermediaries, the greater the freedom in the process of setting prices, while the smaller their number, the greater the monopoly.”

At the same time, “the market behavior also plays a great role in setting prices. This means how producers and intermediaries behave and act in reality”, he added.

Head of the Farmers Union Mahmoud Al-Ouran told Jordan News that “what Zoubi says may be true in the language of science and logic, but this does not happen on the ground”.

“If we want to discuss the reality of the price-fixing system, I will say that the infrastructure in Jordan is not appropriate at all, and the legislation governing it is not equitable at all,” he further said.

Farmers are going through hard circumstances, and have high expenses, including the cost of production, and seasonal demand are not helping them offset the expenditures, he said.

“We must not be deceived by the high demand during the holy month of Ramadan. Farmers are still going through very difficult conditions, and we have to support them, and stand by them”, he said.


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