Today : Mar 30, 2025
Economy
27 March 2025

Surge In Vegetable Prices Sparks Concern In Morocco

As Ramadan approaches, soaring onion and pepper prices raise alarms among citizens and market experts alike.

In Morocco, the wholesale markets for fruits and vegetables have recently experienced a significant spike in prices, particularly for onions and peppers. As the holy month of Ramadan approaches, the price of onions has surged to 10 dirhams per kilogram, while peppers have reached an astonishing 20 dirhams per kilogram. This price increase has sparked frustration among citizens, as Ramadan typically sees a rise in the consumption of these staple foods.

Abd al-Razzaq al-Shabi, the head of the Collective of Wholesale Vegetable and Fruit Market in Casablanca, confirmed that the current wave of price hikes is affecting all types of vegetables, including onions and sweet peppers. He noted that during Ramadan, the wholesale price of onions fluctuates between 8 to 10 dirhams per kilogram. Al-Shabi attributed the price increase to excessive exports, stating, "The export season for crops begins in September, including onions, which are exported in large quantities to African markets." He emphasized that the primary challenge facing the local market is to achieve a balance between meeting domestic demand and managing export levels.

Al-Shabi further explained that certain products, such as dry onions, have reached the end of their season, leading to a decrease in the quantities available in the market. He remarked, "The increase in demand and the reduction in supply naturally lead to an increase in prices." Regarding peppers, he noted that the price has seen a significant rise at the start of Ramadan, reaching 20 dirhams per kilogram. However, he assured that there has been a gradual decline in prices recently, although they remain relatively high compared to the purchasing power of the average Moroccan citizen.

He pointed out that the main reason for the rising prices of peppers is largely due to export restrictions to various international markets, including Europe, Africa, and Asia. This trend negatively impacts local pepper prices, which have been on an upward trajectory. Al-Shabi stressed the need for sustainable solutions to control the prices of peppers and vegetables in general, rather than seeking temporary fixes related to specific products. He advocated for comprehensive strategies that include expanding cultivated areas based on local market needs and strengthening export controls to ensure a balance between local and foreign markets.

In conclusion, Al-Shabi drew attention to a French experience from the 1990s, where restructuring wholesale markets helped meet citizens' needs for fruits and vegetables, contributing to price stability. He suggested that "this model can be adopted in Morocco to ensure price stability and protect the purchasing power of citizens."

In a surprising turn of events, pepper prices in Vietnam have also seen a sudden increase as of March 27, 2025. In major growing regions, prices have reached between 159,000 to 160,000 VND per kilogram. Specifically, in Gia Lai, the price is fixed at 159,000 VND per kilogram, while in Dong Nai, Dak Lak, Dak Nong, Ba Ria - Vung Tau, and Binh Phuoc, prices are consistently around 159,000 to 160,000 VND per kilogram.

This unexpected increase of 3,000 VND per kilogram marks an important recovery threshold for pepper prices. The local market is stabilizing at high levels, with large quantities of pepper from the Central Highlands entering the harvest season, ensuring production. Export companies are reportedly increasing their purchases to fulfill orders from Europe and the United States.

Looking ahead, it is anticipated that local pepper prices will remain high, potentially rising slightly due to strong export demand. In the global market, black pepper, which enjoys high demand in major markets, is being purchased at lower prices. According to a report from Ptexim Company, which specializes in exporting pepper and spices in Vietnam, harvesting in the Central Highlands and southern provinces is currently underway. Dak Nong has harvested about 70% of its area, Dak Lak 40%, and Lam Dong 60%, while regions like Gia Lai, Binh Phuoc, Dong Nai, and Ba Ria - Vung Tau have harvested approximately 50%.

Despite more than half of the harvest being completed, many farmers are holding onto their products, anticipating higher prices before selling. In the global market, the International Pepper Community reported a decrease in prices for black and white pepper in the Indonesian market. Black pepper prices have dropped by 0.36%, hovering around 7,241 USD per ton (approximately 186,818 VND per kilogram), while white pepper is being sold at a lower price of 1.37%, with an announced price of 10,069 USD per ton (approximately 259,781 VND per kilogram).

In the Brazilian market, the price of black pepper ASTA 570 remains around 7,000 USD per ton. Meanwhile, in Malaysia, the prices of black and white pepper from ASTA Company are estimated at 9,900 USD per ton and 12,400 USD per ton, respectively. Notably, black pepper export prices in Vietnam are moving positively, with a grade of 500 grams per liter trading at 7,100 USD per ton (approximately 183,180 VND per kilogram), while a grade of 550 grams per liter is priced at 7,300 USD per ton (approximately 188,340 VND per kilogram). The export price of white pepper has also risen to 10,100 USD per ton (approximately 260,580 VND per kilogram).

In the Indian market, pepper prices have remained stable for most varieties. Pickled pepper is priced at 67,200 rupees per quintal (approximately 208,609 VND per kilogram), while unmixed pepper is priced at 65,200 rupees per quintal. The lowest price for pepper per gram/liter is 64,200 rupees per quintal (approximately 199,297 VND per kilogram).