| July 2008 - Society |
| July 2008 |
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Feeling the Pinch: the Rising Price of Food Words Fay Ferguson
The global food crisis has seen prices reach a 30-year high, triggering riots in several countries and forcing world leaders to meet at an emergency UN-led food summit in Rome last month. Syria has not been immune, with the price of some goods rising up to 60 percent over the past year alone. All of this eats into the income of working Syrian families. Riad Abu Elyas, a taxi driver in Damascus, said his income no longer supports his family. “I have 25 percent fewer customers,” he said. “When people see the metre going up quickly, they get angry and no longer pay extra like before.” Earning SYP 15,000 (USD 325) per month, Elyas’ family buys less food now and only eats meat once a week. “I pay SYP 2,500 (USD 55) a week on medicine for my wife who has kidney problems,” he said. “She needs an operation but we can’t afford to save up for it. I sometimes wonder if it would be better in jail, at least we would be guaranteed the basics we need that way.” The rising price of goods in Syria is being fuelled by a number of factors. The global rise in commodities has seen the price of imported items such as rice and animal feed skyrocket. A poor harvest last year due to drought resulted in reduced crop yields, while the government’s decision to press ahead with a programme to cut fuel subsidies has also resulted in higher shopping bills for Syrians. Following the controversial decision implemented in April, the price of gas oil tripled to SYP 25 per litre, causing food and transport costs to more than double in a matter of weeks. Consequently, those who used to earn just enough to support themselves are now struggling to cope. “The cuts in fuel subsidies could not have come at a worse time for the poor because it increased their suffering,” Safi Shuja’, director of the Syrian Economic Centre, said. “Unfortunately the government reduced subsidies before a compensation plan was implemented.” Food Security Food security has long been a pillar of the Syrian Government. Despite moves to end the country’s system of subsidies, every Syrian is still issued with food coupons allowing them to purchase subsidised rice and sugar from governmental distribution centres and shops, providing a safety net for the country’s poorest families. Many more well-off Syrians do not use their coupons, preferring to purchase higher quality food items. The global food crisis is, however, producing local shortages. In recent months the kind of rice normally available for purchase on coupons has been widely unavailable, forcing the country’s most vulnerable consumers to buy a more expensive variety. Whilst government shops still offer the cheapest prices for food, with Thai rice selling today at SYP 63 as compared with SYP 75 at private shops, their supplies are limited and basic commodities such as meat and dairy are often low in stock. One product guaranteed to remain affordable is bread. On April 17, Syrian Finance Minister Muhammad al-Hussein announced that “bread prices are a red line”. Bakeries continue to sell bread at low prices because they are subsidised by the government. The rise in food prices is forcing a growing number of Syrians to turn to charities for help. “Recently many more families have asked for assistance.” Riad Horsheed, manager at the Syrian charity Hafz al-Na’ameh, said. “We used to give clothes, food and medicine to families who earned only SYP 4,000 (USD 85) or less per month, but now that boundary has stretched to SYP 8,000 (USD 173).” The amount of supplies the charity receives has also been affected. “Small businesses give fewer donations because they can’t afford it anymore,” Horsheed said. “This could become a problem if the number of families unable to support themselves keeps increasing.” Support for the poor To counter rising living costs, President Bashar al-Assad signed a decree on May 4 authorising a 25 percent wage increase for public servants and military personnel, with a similar rise in pensions for retired state workers.
“This scheme does not protect all consumers,” Adnan Dakhakhni, MP and general manager of a consumer protection NGO, said. “The government mistakenly believes that it makes no difference how big or small the family is. When it comes to boiling water, however, four people will use less fuel than 10.” The National Social Aid Fund, a project the government is setting up with the United Nations Development Programme (UNDP), is also working to ease pressure on the poor. It is expected the fund will start distributing cash transfers to low-income Syrians next year. “In the face of a rapidly changing situation, the fund provides the government with a flexible tool with which it is possible, in principle, to respond to changes in poverty caused by changes in the cost of living,” a spokesperson from UNDP-Syria said. As well as carrots, Syrian authorities are also bringing sticks into the marketplace to ensure the country’s poor are not exploited in times of rapid price rises. A new set of consumer protection laws implemented on June 11 aim to ensure unscrupulous shop owners do not exploit the food crisis for greater profits. “One of the new measures ensures that monitors check that food is being sold for the price it says on the packaging and that all prices are clearly labelled,” Anwar Ali, consumer protection director from the Ministry of Economy and Trade, said. Long-term solutions The global food crisis and its impact on Syria have also produced calls for reform of the country’s all-important agriculture sector. The way forward is a highly contentious issue, with some saying the sector needs greater government intervention and food security should remain an overriding goal, while others say the sector should be liberalised and state price support curbed.
Mohammed Wardeh, an independent consultant in agricultural development, believes the country needs to invest much more in its agricultural production over the coming years. “We will have a real problem if we continue like this, with no improvement in irrigation on the lands and agricultural support,” Waradeh said. “In two or three years we could have a major crisis on our hands.” |
The government has also rolled out a fuel coupon programme as subsidies have been clawed back. Under the programme, each family has been issued with a 1,000 litre coupon for subsidised heating oil, allegedly enough for the coldest winter. The programme has not, however, been without controversy. The family criterion excludes singles and students living away from home. In addition, some people are dubious that 1,000 litres is sufficient for every family.
Shuja’ is on the side of greater government intervention. He said that while Syria’s 2007 drought undoubtedly damaged harvests, causing imports of animal feed to increase and produce higher meat and dairy prices, the government needs to play a greater role in protecting the land. “Syria has a good agricultural structure, but the government’s mismanagement leads to reductions in harvests,” Shuja’ said. “Of course the bad climate makes the situation worse, but if the government gave farmers more support, there’s no doubt this would reduce the effects of the crisis.”