Central bank policy has combined with a lower currency value to make produce imports more expensive in Egypt this year during Ramadan, at a time when domestic produce prices have also been higher year-on-year.

Cairo-based Pico Modern Agriculture is mainly focused on exports, but the company's business development manager Heike Hagenguth said the group also supplied the local market with key retail accounts including Carrefour and Spinneys.

"Food prices started to increase sharply about one month ahead from the start of Ramadan, leading to a higher inflation rate," she said.

"Fruits and vegetables became about 7.4% more expensive in May. The annualized inflation rate was at 13.11% by the end of May compared to 11% in April.

The executive cited fresh dates, melons, watermelons and grapes as products in high demand at the moment, as well as all vegetables.

"Many food items like imported dates and nuts have become even more expensive (about 40% compared to 2014) due to the higher dollar exchange rate and complications that importers suffer from as a result of the Central Bank of Egypt’s decision to limit bank deposits in foreign currencies in their effort to control the black market in foreign currencies.

"The government subsidizes food for the poor, and fruits and vegetables are about 25% cheaper for those who benefit from the subsidy system."

She said overall demand for food tended to increase during the religious holiday, which this year runs from June 18 to July 17.

Source: Agroreports.com

"Although Muslims fast from dusk till dawn, the average food intake increases. People started to stock pile food products, especially expensive meat, ahead of Ramadan," she said.

"The typical Egyptian consumers are very seasonal buyers. Typical import products are apples, pears, stonefruit, kiwifruit and bananas, and niche markets like gourmet shops import small quantities of exotics and off-season soft fruits."

She added the overall export demand for Egyptian fruits and vegetables was increasing year by year, including in the Gulf countries where demand was rising strongly.

"Markets like Syria, Libya and Iraq are still receiving products although the distribution channels in some cases have changed due to the political events," she added.

Last year, Egypt's imports of EU-grown fruit alone rose seven-fold during June and July, according to Eurostat statistics.

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