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UAE: Prices likely to rise after ban on imports from five countries

Last week, UAE authorities banned the importation of fruits and vegetables from five countries amid concerns about the high amounts of pesticides used in their agricultural production.

Since the ban on the import of fruits and vegetables from Egypt, Oman, Jordan, Lebanon and Yemen, consumers have feared the possibility of rising prices ahead of Ramadan. While many wonder why prices should rise and why agricultural products are not imported from other nearby countries, traders and importers say they are currently looking for suppliers from Africa and Europe, which will likely result in rising logistics costs and more expensive agricultural product imports.

This, of course, is only one side of the issue; the other, most important, aspect is public safety. In this regard, authorities are believed to have acted appropriately to avoid a potential crisis and protect consumers from danger. In the short term, this may mean a rise in prices, causing more pressure on consumers, but in the long term prices should stabilise, as importers will be able to negotiate better prices with the producers.

Last year, imports of hot peppers, mangoes and cucumbers from India were banned after food safety inspectors found unacceptable levels of agricultural pesticides and dangerous substances in these commodities. The ban was lifted later, after confirming that exporters followed the safety standards.

Consumers are also increasingly interested in the origin of the products they buy. If supermarkets and grocery stores are more transparent about the source of the products they sell and what chemicals are used in the production process, some consumers are willing to pay more.


Source: albawaba.com
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