Every few years, some commodity hits the jackpot, as when cartons of iceberg hit $45. A banner year makes the bust years easier to weather.
In Egypt, the government has enacted mandatory price caps on fruits and vegetables, after merchants didn’t voluntarily slash the prices themselves. A recent story on dailynewsegypt.com — the online version of Egypt’s “only daily independent newspaper in English,” according to the website — says government officials believe the law allows them to “price any commodity in the market at any time.”
Can you image the havoc with markets in the U.S. if the government could set prices? The hue and cry of socialism!
The government released its first round of products affected by the price restrictions in late September. On a per-pound basis, onions must be priced from 88 cents to $1.12, tomatoes can range from 48 cents to 64 cents, and potatoes are set at $1.52 to $1.76. Every Thursday, a council made of vendors, and supply and government agricultural representatives meet to determine whether to increase or lower prices. Violators can be fined about $390 (U.S.) and face up to five years in jail.
The measure is part of a series of populist measures from the transitional government, after the country’s military ousted president Mohamed Morsi in July. From all accounts, it’s been well-received. Press reports say consumers support the new controls (why wouldn’t they?) and the prices still allow growers to turn a profit.
Despite instability in the market, why are the growers taking it on the chin, as they so often do? If the prices have been cut minimally, as the Egyptian government claims, then it should be the government, not the growers, to stabilize the market.
In Hawaii, fruit growers are facing another kind of threat, one that could eradicate papaya production there.
This story starts back in the 1990s, when the ringspot virus threatened to wipe out papayas on the island. The virus had first been detected in the 1940s. Researchers genetically engineered a papaya — the rainbow — and now 60% of the U.S. papayas are grown there.
But now anti-genetically modified organism activists are hacking down trees. In late September, about 100 trees were slashed. Last year about 10 acres were destroyed, and the year before that 8,500 trees were cut down by activists.