Grocery shopping more expensive: Major hikes in the price of food products this year

The year 2017 is likely bitter for consumers as prices will tend to increase during the first month of the year. Four main products that will know an increase include: pulses, rice, milk and cooking oil.

Pulses 

The price of pulses are expected to increase by Rs 3 to Rs 5 by the end of January and early February. The reason is that the production of lentils in Canada and beans in China has declined while demand remains high. In this case the increase is inevitable. 

Rice

Likewise, as highlighted by Rajesh Ramdenee, importer and distributor of rice, the yield has fallen by 30% for the current crop and as a result prices have soared by 20% to 25%. “There is a strong demand in Iraq and the yield for rice has already known a decline. Hence, a rise in price is unavoidable at the beginning of this year. Mauritius is not alone in experiencing this increase,” he said.   

Oil 

Since October 2012, the price of oil has gone through several declines before rising in May 2016. As stated by Brand Coordinator of Moroil, Stephanie Marie, an increase in the price of cooking oil can be passed on at the beginning of 2017 because we are dependent on the price of oil on the international market. “With its price rising, we must therefore review our prices in this direction. As we know the surge of the dollar against the rupee”, she says. However, the quantum of the rise is not yet known. As explained by Mosadeq Sahedin from the Consumer Advocacy Platform, the competition prevailing in this market and the liberalisation of imports could impact retail prices but we are still far from a massive rise in prices. 

Milk 

The General Manager of the Commercial Division of Innodis, Sonny Wong, argues that in the first quarter of 2017, the price of milk will increase. One of the main reasons put forward is that prices have risen globally due to rising demand in the last quarter of 2016. “The price has increased by more than 50% compared to July 2016. Normally this will result in higher prices on our shelves during the first quarter of 2017,” Sonny Wong said.

Rajesh Ramdenee, Managing Director of Tire Master Food Division, states that in the last three months of 2016, the price of milk has increased by 25% to 30%. This is due to the fact that production is lower in New Zealand, Australia and Europe. On the other hand, there is a strong demand from China. Mauritian consumers should foresee a minimum increase of 20% by the end of January,” he added. Mosadeq Sahedin avers that with the increase in milk, other products like butter, cheese and other dairy products will also cost more in 2017.