Libya’s Tripoli based Ministry of Economy and Trade hailed last Wednesday (29 April) the significant price declines in the white and red meat market. This follows a similar announcement of price falls in fish earlier this month.
Vegetables
The ministry had also announced significant price falls in vegetables averaging from 46 to 60 percent in garlic, cucumbers, tomatoes, sweet peppers, aubergines, potatoes and onions.
Grain prices
The effects of policy adjustments, the Ministry further added,
is beginning to become apparent through the marked decline in the prices of feed grains, as one of the main inputs in the food chain.
This correction in feed prices is a direct indication of the trend of prices towards their fair levels, as it is rapidly reflected in the cost of basic commodities, especially meat and eggs, which contributes to easing the pressure on the standard of living of citizens, the ministry explained.
It said these price falls indicate the beginning of a genuine market correction resulting from policy adjustments and supply chain regulation.
These developments, it added, reflect the effectiveness of the measures taken to regulate the market, supporting the move towards fair prices and promoting sustainable stability.
According to the Ministry, the price of locally produced lamb has decreased from 110 dinars per kg at the beginning of April to 95 dinars, imported lamb from 30 dinars to 27 dinars, locally produced veal from 85 dinars to 75 dinars, imported veal from 45 dinars to 30 dinars, locally produced chicken from 27 dinars per kilogram to 17 dinars, and imported chicken from 20 dinars to 15 dinars.
Policy initiatives by the Ministry and the CBL to bring prices down
It will be recalled that both the Economy Ministry and the Central Bank of Libya have been making a concerted effort to bring prices down through a series of initiatives. These include clamping down on market distortions, smuggling of goods to neighbouring countries, profiteering and reducing the black-market foreign exchange rate of the Libyan dinar.
The dinar exchange rate inputting into import prices
Libya imports around 80 percent of its food consumption, and the foreign exchange rate of the Libyan dinar is reflected in prices. The dinar had been declining up to February this year. Yesterday, the Libyan dinar was trading at around LD 7.75 per US dollar – not quite at the CBL’s target of LD 6.90 – but well below the LD 9 to 10 per dollar peak in February this year.
