Monday, August 20, 2007
Food prices soar as rationing program crumbles
Economy
(Azzaman) - The rationing system under which Iraqis get free basic foodstuffs is no longer functioning well and as a result food prices have skyrocketed recently. The system was introduced by former leader Saddam Hussein to offset the impact of sweeping U.N. trade sanctions imposed for his 1991 invasion of Kuwait. In the years until his downfall in 2003, the system worked properly and is accredited of saving millions of Iraqis from starvation.
But since the arrival of U.S. invaders, the rationing program, as is the case with almost everything in Iraq, crumbled. The quality of food deteriorated and often Iraqis have had to go without certain items. Under the system, each Iraqi is entitled to a certain amount of basic foods like rice, sugar, cooking oil, legumes, tea and flour.
But in the past two months many areas received almost nothing and others only got a portion of allocations. And as a result food prices have soared due to increasing demand of food stuffs on the spot market. Not every Iraqi currently receives the rations. More than two million Iraqis have fled the country to neighboring and the government is practically doing nothing to help them.
Baby formula which is part of the rations is now dearer than ever. A one-kilogram tin has shot to 11,000 dinars ($9 - 1 USD = 1,235.40 IQD) from about 2500. Vietnamese rice surged to 1,000 dinars from 500 and a kilogram of vegetable ghee to 2000 dinars from 750. The local press has lashed out at Iraqi traders blaming them for the price hikes but traders say the government is to blame for failing to honor basic commitments.
“Markets move up in case of scarcity and when the government delays rations or reduces their quantity demand rises and prices follow suit,” one trader, refusing to be named, said. Hassoun Allawi relies almost exclusively on rations to feed his family. But in the past two months, he had not received his share of rice, cooking oil and milk. “Food is more challenging to us than security. And I hope the authorities realize that,” he said.
But since the arrival of U.S. invaders, the rationing program, as is the case with almost everything in Iraq, crumbled. The quality of food deteriorated and often Iraqis have had to go without certain items. Under the system, each Iraqi is entitled to a certain amount of basic foods like rice, sugar, cooking oil, legumes, tea and flour.
But in the past two months many areas received almost nothing and others only got a portion of allocations. And as a result food prices have soared due to increasing demand of food stuffs on the spot market. Not every Iraqi currently receives the rations. More than two million Iraqis have fled the country to neighboring and the government is practically doing nothing to help them.
Baby formula which is part of the rations is now dearer than ever. A one-kilogram tin has shot to 11,000 dinars ($9 - 1 USD = 1,235.40 IQD) from about 2500. Vietnamese rice surged to 1,000 dinars from 500 and a kilogram of vegetable ghee to 2000 dinars from 750. The local press has lashed out at Iraqi traders blaming them for the price hikes but traders say the government is to blame for failing to honor basic commitments.
“Markets move up in case of scarcity and when the government delays rations or reduces their quantity demand rises and prices follow suit,” one trader, refusing to be named, said. Hassoun Allawi relies almost exclusively on rations to feed his family. But in the past two months, he had not received his share of rice, cooking oil and milk. “Food is more challenging to us than security. And I hope the authorities realize that,” he said.
Labels: food prices, ration cards
Tuesday, April 24, 2007
Terrorists disrupt delivery of ration cards to Mosul
Security
(Al Mada Newspaper) - Brigadier General, Saad Ahmed Al Jabouri, Ninawa’s Police spokesman said, “Unidentified people delivered propaganda to markets and stores which stated that terrorists will prevent trucks and food merchants from delivering ration card items to areas of southern Mosul including; Qaiyara, Sharqat, and Hadir.” Al Jabouri added, “Four months ago, these areas did not receive food and oil products because the truck drivers and merchants were prevented from delivering their products due to threats to kill them made by unidentified terrorists.” The sources added, “The reasons behind these threats are to deny food rations to these areas because the residents work in the police and Iraqi Army.”
Labels: Iraqi Army, Mosul, oil products, ration cards, Saad Ahmed Al Jabouri, World Food Program
Thursday, April 19, 2007
54 countries reduce Iraq debt
Finance
(Iraq Directory) - The Ministry of Finance said that the number of countries that have reduced their debt on Iraq hit 54 states, and the government is continuing its efforts to reduce the remaining debt and hopes to reduce some of its debt to the rate of 100%, while the Adviser of the Prime Minister for Economic Affairs, Kamal Al-Basri, said the Paris Club settlement stipulated stopping the State’s subsidy to a number of sectors and activities in order to drop 80% of Iraq's debt.
The Ministry of Finance noted that the follow-up efforts of the Ministry will continue in order to cancel the debts of Iraq once and for all to promote the economic reality of the country and ensure a decent life for all its citizens; the Ministry was working to repatriate funds, especially those funds and real estates stolen by the former regime and his followers and smuggled outside the country, as well as following-up Iraq's dues for loans granted to some countries where the Iraqi Fund for Foreign Development is following-up Iraq’s debts and their benefits according to time periods.
Adviser of the Prime Minister for Economic Affairs said that there is a plan to compensate the current ration card with cash and provide a competitive market for supply materials; the plan will be implemented in three provinces: Dahuk, Samawah and Hillah, where the amount of compensation will be $ 10 per person, since the volume of the State’s expenditure, the big deficit in its budget and the total amount of the government’s subsidy has become a major burden on the State’s budget and its economic growth. He continued that Iraq needs 200 billion dollars for reconstruction, and this amount can only be provided after 20 years if the National Oil Company were able to maintain the production of three million barrels per day.
The Ministry of Finance noted that the follow-up efforts of the Ministry will continue in order to cancel the debts of Iraq once and for all to promote the economic reality of the country and ensure a decent life for all its citizens; the Ministry was working to repatriate funds, especially those funds and real estates stolen by the former regime and his followers and smuggled outside the country, as well as following-up Iraq's dues for loans granted to some countries where the Iraqi Fund for Foreign Development is following-up Iraq’s debts and their benefits according to time periods.
Adviser of the Prime Minister for Economic Affairs said that there is a plan to compensate the current ration card with cash and provide a competitive market for supply materials; the plan will be implemented in three provinces: Dahuk, Samawah and Hillah, where the amount of compensation will be $ 10 per person, since the volume of the State’s expenditure, the big deficit in its budget and the total amount of the government’s subsidy has become a major burden on the State’s budget and its economic growth. He continued that Iraq needs 200 billion dollars for reconstruction, and this amount can only be provided after 20 years if the National Oil Company were able to maintain the production of three million barrels per day.
Labels: debt, Ministry of Finance, ration cards
