Monopoly and rising sheep prices during Eid

Mohammed Al-Suhaimi Makkah Everywhere the prices of goods will go down when the supply goes up compared to demand. But the Kingdom’s sheep market does not follow this maxim. Sheep supply increased when the Ministry of Agriculture allowed its import last July. The move was supposed to bring down prices in the sheep market helping people to perform animal sacrifice without causing too much of a financial burden. The sheep import should have impacted prices of meat at restaurants and shops as well as prices of animal and vegetable products due to intense competition. But it did not happen. On the contrary sheep prices shot up 30 percent, according to official reports. This means the importers kept the imported sheep inside their enclosures instead of marketing them. Authorities should find out how this happened. Is it because of the monopoly of market leaders who wanted to increase prices in order to make maximum profit during this season? The irony is that the importer of sheep is the same local livestock trader. He was recycling stocks before the bursting of a big ominous bubble on the heads of small investors. Big investors purchase stocks when prices decline as they invest more money from outside to purchase stocks at cheaper prices. They wait for the time when prices go up in order to sell their stocks to make huge profits, which their original stocks do not deserve, thus they make profits at both ends. The ministry has contributed to this money-making process, although it wanted to fight rising sheep prices in the livestock market. Had the ministry not allowed sheep imports we would have criticized it for allowing the hiked prices during the Eid Al-Adha when people sacrifice animals in commemoration of Prophet Ibrahim’s (may Allah’s peace and blessings be upon him) readiness to sacrifice his son Ismail on the instruction of the Almighty. We would also have criticized the ministry for supporting the traders to monopolize the market and increase prices of sheep and other animals. This was the concern expressed by the Ministry of Finance whenever government employees demand a salary hike. Financial experts believed when salaries increase the inflation rate would go up. Ok, agreed, if that is the situation then why the Ministry of Commerce does not try to control prices. They would use the stock reply that it would decline growth, which is determined by demand and supply. The solution then is to open imports. The Ministry of Agriculture has done this and the result was the recycling of monopoly. This blame game will continue for some time and traders will fill their pockets. Amid this scenario, I’d like to ask who will be responsible for the increase in sheep prices during this Eid season? People of our great nation have confronted the traders who monopolize the livestock market with contempt as their action goes against human values and responsibility. It’s totally unacceptable when this illegal trade is done to make huge profits during Eid Al-Adha when people would be ready to pay any amount of money to sacrifice animals to mark the religious festival.