Retailers expect prices of foodstuff to fall

Prominent retailers expect prices of foodstuff to come down in about a month following the elimination of import duties for a range of items on January 1, 2012, reports Haveeru.

Owner of BHM Traders Hussein Moosa told the newspaper that prices of coast milk, cooking oil and tea expected to arrive in a shipment later this month would be lower, adding that BHM has dropped the price of Ye Ye instant coffee yesterday.

Moosa said new prices would reflect savings from import duties or tariffs.

Owner of Lily Store ‘Malla’ Ahmed Nasir also said prices of goods imported after January 1st would be lower. He added that the shops would run out of old stocks at the end of this month.

Items with GST rate set at zero percent for which import duties have now been eliminated include rice, flour, sugar, salt, milk, cooking oil, eggs, tea, fish products, onions, potatoes, fruits and vegetables, baby food, diapers, gas, diesel and petrol.