Consumers Can Rejoice As Food Prices In Africa Are Dropping
The Competition Commission in Africa has announced a probe for an alleged price fixing done by fresh produce market agents according to Huffington Post. The data which was released on Wednesday has brought relief to the consumers as buying food is now cheap.
The investigation by the commission is about the practice of charging a fixed commission on the farmer’s account. According to the reports by the commission, the 50-year old practice is actually price fixing. The commission acted on a complaint made by the department of agriculture, forestry and fisheries according to the reports by the Huffington Post.
The report by the commission include 14 fresh produce agents who act like the middlemen between the farmers and the consumers. It further found that agents from Cape Town, Johannesburg and Durban were involved in this price fixing. The findings also separated out the old agents who were disadvantages and were not able to compete in an effective manner.
Food Becomes Cheaper
According to The Times reports on Thursday, the food prices have been dwindling since the year began. The price of vegetables, oils and fats has gone down by 3.9%, bread and cereals by 4% and fruit by 8.4%. This report released by the Stats SA also said the prices of food has gone down as the crops have begun to recover from the recent drought. An economist, Dawie Roodt informed The Times that due to the cheaper prices, maize has become cheaper and has had a major effect on other foods like meat.