An Overview of Ramadan’s Impact on Global Trade

Published 2021년 4월 26일

The holy month of Ramadan 2021 began on the 13th of April and will last until the 2nd week of May. During this month, Muslims worldwide purchase a wide range of commodities used to prepare the suhoor meal, in the morning prior to the commencement of fasting, and the iftar meal occurs at sunset when Muslims break their fast. Certain products such as meat, seafood, bread, eggs, fruits, and vegetables increase in demand and price this month.

Morocco

In Morocco, table eggs, one of the most popular food products during this holy month, experienced a slight increase in price due to high demand. The cost of the imported avocado, mainly from Latin America, increased by almost 30% due to soaring demand during Ramadan. The wholesale price is set at USD 4 per kg, and the retail price may reach USD 6 per kg. Retail prices of oranges in the local Moroccan market increased almost by 20%in April due to vast demand during Ramadan. The average retail price for 1kg is USD 0.70.

Fish prices have also gone up considerably, and wholesale markets witness an increase in the number of brokers and speculators. Wholesale markets often receive large amounts of fish coming from southern cities, which are resold at higher prices to merchants who, in turn, sell them in installments at even higher prices.

Commercial fish (Longfin gurnard) for sale at the fish market in Agadir, Morocco.

Indonesia

Seafood producers in Indonesia anticipate limited supply when Ramadan concludes due to the high demand for fish during Ramadan. Most of the Indonesian fishermen will go off to sea for about two weeks after the Eid Festival, which will occur when Ramadan ends, to replenish their fish stocks. Supply and prices are expected to return to normal by the end of May or early June. Entering the last week of April, the retail prices of garlic in Indonesia remain stable. This stability is due to imports that were already being distributed and entered into the market from March/early April this year. Some provinces even show a slight downward trend in the prices, contrary to the situation in Ramadan last year.

Kenya

Export prices of Kenyan Avocados' are increasing due to high demand from Arabic countries that consume more avocados during Ramadan. The government has faced a sudden increase in demand for its Avocados in the early days of Ramadan (mid-April to the end of April). The rise in prices is set to last for at least two weeks and drop afterward to keep up with the global market competition as Peruvian avocados approach harvest season.

United Kingdom

Lamb meat demand has been weak this Ramadan as typical gatherings and celebrations were prohibited due to COVID-19 restrictions. However, as regulations are less strict than last year's Ramadan, which was observed under complete lockdown, the UK will witness more robust sales than last year.

Turkey

According to the Egg Producers Central Union (YUM-BİR), egg prices are expected to remain stable during the month of Ramadan, following complaints about price hikes. The decision to increase bread prices by the ITO commission (Istanbul Chamber of Commerce) was delayed because the epidemic peaked and coincided with Ramadan. However, after Ramadan, bread prices are expected to increase by 15%, and 200 grams of bread will be priced at TRY 1.75 (USD 0.21) and 240 grams for TRY 2 (USD 0.24).