If the global food prices continue to increase, it will surely have an adverse impact on the local food prices, and we should be prepared to face such situations.
Dr. Hamad Saad Al Saad, advisor to the Chairman of Hassad Food, in a Peninsula article about how Qatar will be affected when global food prices jump 20 to 25 percent this week.
Unfavorable weather conditions in the US and other countries have caused the price of wheat, corn and other crops to rise worldwide this summer.
According to Al Saad, Qatar, which imports 90 percent of its food, will not be immune to these price hikes.
A local economist agreed with his assessment, but the CEO of Hassad Food was more optimistic, saying the country does not rely on food from the US alone.
Still, the increasing cost of food has contributed to the rising cost of living in Qatar this year.
The Peninsula reports:
Asked if the government price support policy is extended to other staple food items like subsidised wheat flour, will it help curb the inflation, (Al Saad) said: “Any initiative from the government in this regard will definitely have a positive impact on the prices, but if the situation continues to linger for a longer period of time it will not be an economically feasible solution.”
However, officials and experts in Qatar are in denial mode and say that the impact of US drought will be confined within the country and the prices of food in the local market will not be affected and Qatar will largely remain resilient despite being part of the global economy.
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