UAE: Fruit and vegetable market hit by downturn

Although some sectors such as banking and real estate have been heavily affected by the global financial crisis, its effect on the fruit and vegetable business has been relatively low.

The fall in oil prices and the onset of winter has slightly brought down the prices of some fruit and vegetables as more imports arrive from regional countries at a lower transportation cost.

Gulf News spoke to importers, wholesalers and retailers at Dubai fruit and vegetable market to find out how their businesses were running.

According to importers, the prices of necessary agricultural items have remained mostly unchanged while the price and demand for luxury fruit and vegetables has fallen slightly.

"Buying vegetables and fruit is not like purchasing or investing in the automobile or property industry. Food in general - and many agricultural products in particular, are necessary items and people will continue to buy them."

"However, the number of buyers and the purchase of quantities of vegetables and fruit these days has slightly gone down because many expatriates have lost their jobs and left the country. Many residents have also tightened their budgets and are not buying expensive fruit," said Husainy Sharbat, accounts manger at Kibsons International, a company which imports fruit and vegetables.

Travel costs

"In general the prices of necessary items such as potatoes, onions, garlic, ginger and salad items have mostly remained constant. But the price and demand for luxury fruit and vegetables such as grapes, lychees, etc has dropped by 10 to 15 per cent," said Arsalan, a Pakistani importer.

"Currently my business is down. Before those who cooked for a lot of people used to buy a lot of onions and potatoes from me, but now they buy these items in smaller quantities," said a Pakistani wholesale seller.

"My profits have decreased by 20 to 30 per cent," said a Bangladeshi wholesaler. "There are five of us here and there is nothing much to do these days," he added. Retailers at the market have complained that their businesses are not thriving for other reasons as well. They pointed out that its distant location and the heavy traffic on Emirates Road continue to be among the factors contributing to the low turnout of buyers at the market.

"The prices of some agricultural products have decreased and the quality of many items is also good due to the winter season, however, many residents still prefer to buy from grocery stores and supermarkets.

"When the market was located in Al Hamriyah, many people used to go there because it was close to residential areas. Now people are hesitant to come here," said a Bangladeshi seller.

"I don't go to the fruit and vegetable market because it is more convenient for me to shop at a hypermarket. It is like a one-stop shop where I can buy other kind of products as well. The last time I went there was two years ago," said Roopa Mathews, an Indian expatriate who lives in Al Twar.

"You may find fruit and vegetables at slightly cheaper prices there but the travel costs and traffic will add to your expenses," added Bena Soris, who has visited the market only twice.

"Before I used to buy all my groceries within a budget of Dh100 to Dh150. But these days I am spending around Dh300. I don't think the prices have gone down."


Source: gulfnews.com

Publication date: 1/13/2009