Why do food prices always go up every Ramadan? This is the explanation

 


Are you curious about why the price of basic necessities (nine staples) in the market always goes up every time you enter the month of Ramadan?

Prices of foodstuffs such as eggs, chilies, shallots, garlic, chicken, beef, sugar, wheat flour, and cooking oil in traditional markets are usually the ones with the most frequent price increases since the beginning of the month of Ramadan from year to year. .


In theory, as reported by detikcom, the increase in the price of goods in the market is caused by two things. First, the stock of goods decreases when public demand is high.



Second, the production of certain foodstuffs (eg tofu, tempeh, cooking oil) is increasing in order to meet the needs of the community. This can increase production costs so that producers also increase the selling price of their products in order to keep getting a profit.


Just like the laws of economics that we studied in high school, right?



Reporting from detikFinance, the increase in prices determined by market traders is due to high public purchases. The stock of raw materials that will be used as a menu for breaking the fast, dinner, and sahur in the kitchen must always be safe and meet the food needs during the fasting month.


Still from the same page, the increase in prices can also be caused by the anticipation of the public to stock up various food ingredients for Eid al-Fitr from a long time in order to deal with the prediction of a continuous spike in food prices.


Price increases at the time of Ramadan or Eid al-Fitr can also be caused by factors that we cannot control, such as rainfall which can disrupt the harvest period so that the amount of supply cannot meet demand. This is quoted from the CNBC Indonesia page.


For example, red chilies experienced a decline in the growing season due to high rainfall in their agricultural areas. This can lead to high prices for chili in the market because there is only a small supply.


Another reason for the rising prices of basic necessities and foodstuffs ahead of Idul Fitri is that the production process is unable to keep up with the speed of consumer demand. Thus, raw materials such as cooking oil and granulated sugar are limited and even scarce in the market.





For this reason, we often hear about market inspections, such as market operations by the authorities to check the availability of a staple ingredient, as well as incentives from the government to keep selling prices low for the community.


Such is the reason for the increase in the price of basic necessities during this Ramadan. So what are your mainstay strategies in overcoming this?

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