Paraman:


https://punchng.com/food-prices-wont-drop-immediately-despite-naira-appreciation-economists/?utm_source=telegram&utm_medium=social

No be for Nigeria, nothing goes up in price comes down except na discount sales mostly in phones on jumia , slot etc infact the trader in the market selling food stuffs will love to make abnormal profit they don't mind

Paraman:


https://punchng.com/food-prices-wont-drop-immediately-despite-naira-appreciation-economists/?utm_source=telegram&utm_medium=social

The same traders were selling their old stocks at the current market price when prices where going up.
Double standard

But it increases immediately

Teymanhenry:

It's basic Economics bro.
If a trader buys a commodity (maggi) at N1000 and sells at N1,150. If he heard that the company has now increased its selling price to N1,400 cos of the current exchange rate. If the trader doesn't increase his current price to N1,550 or thereabout, how can the trader now go back to the company and buy new stock?

Am an economist...forget the controversial forces of the invisible hands ....now bro wat if the company now downsize prices and cost of her productions......is the seller or trader not expected to follow suit by downsizing his price ....since his/her .....MC =MR .....P=Mr=mc ........ Nigerians are wicked or religious and moral idiots that why with everyone thing in our country we r still struggling....from our leaders to our people....

Agents of bad news stay away.

It went up immediately but won’t go down immediately abi?

Flood the market with goods

oloriooko:
But food prices rose immediately naira depreciated

And rose even more when Naira appreciated. The day Naira was 1900/$, I bought a custard of garri for 2100 each. Yesterday, it was 2200-2500.

This is bad, but if you look at it critically, it's a secret encouragement for people to go into farming so they can make a killing from city boys and girls who hate agriculture.

Fuel plays a major factor in the prices of locally produced foods. So until the price of fuel drops, the price of food would remain high.

oloriooko:
But food prices rose immediately naira depreciated

Blame greedy Nigerian traders.

detopea1:
NNPC has not reduced price of imported petrol bought with dollars.

Business people that know what they are doing will be looking at the body language of NNPC.

We are in a volatilty stage. 3-5 months of stability will determine if there will be any significant price reduction of food.

But we don't import yam, garri, etc. This shows that we are battling with cost push inflation which started when price of petrol went from 165 naira to 650 naira. Diesel price is high too.

Nigeria is still buying at lower rate compared to other African and oil producing countries like Nigeria too .

So stop yarning dust Nigeria is still far more better if not because of d subsidy on the oil for long we would have seen or known d realities before now

I thought business is all about loss and gain because these people had plenty gain when they heard about the increment of goods and immediately they all increased there prices, even those with old stocks and recorded massive gains. They should bring the prices of goods down to reflect the current exchange rate immediately because if the dollar exchange rate should increase now, they won't wait to sell off there old stocks.
Very wicked set of Nigerians

Teymanhenry:

It's basic Economics bro.
If a trader buys a commodity (maggi) at N1000 and sells at N1,150. If he heard that the company has now increased its selling price to N1,400 cos of the current exchange rate. If the trader doesn't increase his current price to N1,550 or thereabout, how can the trader now go back to the company and buy new stock?

True

But when he heard that it is now N800, why didn't he reduce the price to N950?

Why is he bent on selling at N1,550 because he wants the naira gain to 'stabilize'? Why doesn't he display the same quick believe when things were getting worse now they are getting better?

I am not disputing your economics; I am saying that almost everyone consciously or unconsciously plays the game to favour them.

Rubbish

Of course it will take time.Everything in existence operates with time. There's no magic formula to anything. God bless BAT,as he works on his agenda for a better Nigeria.

immortalcrown:
Rational people know this. Sentimentalists are the ones nagging.

If you are rational and not selfish, you don't have to be a trader to understand that it is unfair to ask traders to reduce prices now.

Only nonprofit organizations quickly adjust sale prices according to cost prices because they are not in the business to make profit. But they also adjust the prices in a way that will prevent the organizations from going bankrupt.

Even NNPC has not reduced fuel price that is directly dependent on Dollar rate. This is because fuel imported or distributed at the old rate will be sold based on the old rate. This is a simple logic.

Retailers that have old stock sell with the rate that will enable them buy more from wholesalers who imported at high rate.

Also, retailers and importers who bought items after the fall of Dollar rate need to sell with the existing high prices because there is no guarantee that the current Dollar rate will either be stable or go lower.

The Dollar rate has to either remain stable or continually fall for many months before it becomes wise for traders to reduce prices. Traders may reduce prices now and Naira will fall to 3k per dollar next two months, making it difficult for the traders to raise capital by then.

Illustrations:
1.
Old and cheaper stock. You bought 10 bags at the cost of ₦3,000 (₦300 per bag). You plan to sell each bag ₦400 to make the gross profit of ₦100 per bag. The cost price later increased to ₦500 per bag and you have sold only 5 bags. 400x5=2,000 (₦2,000). With the new cost price of ₦500 per bag, one bag is now sold for ₦600. But you continued to sell the remaining 5 bags at the rate of ₦400 per bag because they are old stock. After selling the 10 bags, you got ₦4,000.

Someone that does not understand business will say you have ₦1,000 as your profit (4,000-3,000=1,000) because you bought the bags ₦3,000. The ₦1,000 is even a gross profit here, not net profit. But they don't understand that one.

But did you actually make any profit? Let's check it. Since the new cost price is ₦500 per bag, you need ₦5,000 (500x10) to restock your shop. But you realised only ₦4,000 from your previous sales. This means you didn't make any profit and the money is not even enough to replace the sold bags. I am not even talking about the rent and utility bills you paid while selling the 10 bags Na to go village be that.

2.
When you buy at high rate and the rate falls while you have not sold out the stock: You got 10 bags at the cost of ₦5,000 (₦500 per bag) and plan to sell each bag ₦600. You sold 5 bags and got ₦3,000 (600x5) before the cost price fell from ₦500 to ₦300 per bag. You reduced your sale price from ₦600 to ₦400 to please your customers. You got ₦2,000 (400x5) from selling the remaining 5 bags. This means you made the total of ₦5,000 from selling the 10 bags.

Did you make any profit? No, because you paid ₦5,000 for the bags. Did you incur any loss? Yes because you paid rent, security and other utility bills when selling the 10 bags.

Artificial strengthening of the naira will bring no reprieve. When serious development happens things will change. Starting with 24/7 power supply

Useless greedy bastards everywhere

immortalcrown:
Rational people know this. Sentimentalists are the ones nagging.

If you are rational and not selfish, you don't have to be a trader to understand that it is unfair to ask traders to reduce prices now.

You talk too much, abi na type too much. Read the quote below and tell us why. If the price still remains the same, we get can understand why is the price still increasing despite the fact that naira has appreciated against dollar by over N500?

[b]

Favour Uche, a foodstuff seller at EFAB market, told Sunday PUNCH, “The price of rice didn’t reduce even now that the dollar is down.”

Uche emphasised the challenges faced by traders, including the expenses incurred to maintain product quality amid infrastructural constraints.

“The price of rice didn’t decrease. Even now that the dollar is down, it still hasn’t reduced. For example, a carton of Titus fish cost N90,000 two weeks ago but today, the same carton of fish is sold at N95,000 as of March 29, 2024.

“Even with the fact that the dollar has reduced, but being in the system, I think I understand why. It is because they use one-third of their profit to buy diesel to cool these fish and keep them frozen. After all, there is no light. So, I understand their pain and why the prices are like that,” she added.

Another trader, Abdul Yusuf, who sells meat, asserted, “Price did not come down even with the dollar fall.

“Two weeks ago the price of one kilogramme of meat was selling at N4,800 but now, it is N5,000. So, the price did not come down even with the dollar falling.”

maasoap:
You talk too much, abi na type too much. Read the quote below and tell us why. If the price still remains the same, we get can understand why is the price still increasing despite the fact that naira has appreciated against dollar by over N500

You are the one who talks too much and senselessly. My comment explain the reason for the experience of the traders you referenced. What you referenced does not counter my comment.

See whyning

Tribal newspaper PUNCH interviews yoruba Economic apologists trying to explain the failure of their supposed Lord and personal savior

Story. These theories don't work in Nigeria. People will always find excuses to raise prices. If the government increases the salaries of workers now, you will see them increasing prices.

You are trying to rationalize insatiable greed.

those of you wey buy dollar for #1600+ way still never sell.... How market?

Kingrshd3:



Nigeria is still buying at lower rate compared to other African and oil producing countries like Nigeria too .

So stop yarning dust Nigeria is still far more better if not because of d subsidy on the oil for long we would have seen or known d realities before now

A business that is buying petrol at 165 naira per iitre and another that is buying petrol at 650 naira should have same selling price? You are the author of dust here.
People like you that have never run any business will open mouth waaa.

bukatyne:


True

But when he heard that it is now N800, why didn't he reduce the price to N950?

Why is he bent on selling at N1,550 because he wants the naira gain to 'stabilize'? Why doesn't he display the same quick believe when things were getting worse now they are getting better?

I am not disputing your economics; I am saying that almost everyone consciously or unconsciously plays the game to favour them.

It is survival of the fittest. No emotion in business.
Yes, they have to wait till it stabilize. Government policies can be a trap, so any business person needs to open eyes very well.

Paraman:


https://punchng.com/food-prices-wont-drop-immediately-despite-naira-appreciation-economists/?utm_source=telegram&utm_medium=social

But when businesses have old stock and suddenly they increase prices to make more profits because dollars was going up....


Now dollar is going down but they can't reduce prices.


Government agencies in charge of price and commodity control can do better than this

libertyfather:
till when?

...until when the price of fuel, diesel is reduced and come down...the high costs of transporting this foodstuffs to the market it's the cause of the high costs of food stuffs...

The naira appreciating and having value against the dollars cannot alone reduce the price of food stuffs and goods.......if the price of fuel and disel is reduced and its comes down.. then the price of foodstuffs goods will reduce and comes down..it's the high costs of transporting this foodstuffs and goods to the market causing the high costs of food stuffs and goods in the market

MaziObinnaokija:
we are our own enemies, enemies of progress in this country. Even those that have old stock will still shortchanged their customers.

...if the price of fuel, disel is reduced the price of foodstuffs will reduce and come down...it's the high costs of transporting this foodstuffs to the market causing the high costs of food stuffs in the market

jkpbestseries:
when i become the president i will arrest anyone that read economics in school and set Price Regulatory Agency across the federation, becos all the economist have no solution to Nigeria economy. People are quick to add price but not quick to reduce price.

..if the price of fuel, diesel is reduced the price of foodstuffs will reduce and come down...it's the high costs of transporting this foodstuffs to the market causing the high costs of food stuffs in the market

U may be right.But the song comin out from those traders/market people are Dollars this/that,even those that doesn't knw bout FX.

ufotunang:
...if the price of fuel, disel is reduced the price of foodstuffs will reduce and come down...it's the high costs of transporting this foodstuffs to the market causing the high costs of food stuffs in the market

Stevenson20:
There's no sign that the prices of foodstuffs will go down soon. Some of all these goods were already stored in warehouses before this dollar hike; yet we choose to sell them at an exorbitant amount immediately we hear that dollar has gone up.

Politicians aside, na we the masses dey do ourselves

.if the price of fuel, disel is reduced and its comes down..the price of foodstuffs will reduce and come down.mmits the high costs of transporting this foodstuffs to the market causing the high costs of food stuffs and goods in the market

magoo10:
In other words the present naira gain needs to be sustainable for a reasonable period of time to enable prices of commodities to go back to normal.

..it's the removal of fuel subsidy that caused the high costs of food stuffs and goods in the market..if the price of fuel and disel is reduced and come down the price of foodstuffs and goods will reduce in the market