Economic Expert Stresses Agricultural Storage for Market Stability
Economic expert Abdelkader Mechdal has underscored the significant importance of agricultural storage and distribution facilities in ensuring product availability and stabilizing market prices. He noted that these facilities could serve as a foundational platform for export. This emphasis follows decisions from a Council of Ministers meeting, chaired by President Abdelmadjid Tebboune, aimed at correcting market trajectories. The government's adoption of two mechanisms, overseen by the Ministries of Interior and Domestic Trade, is designed to facilitate the creation of storage spaces, guarantee product availability, define profit margins, and reduce the influence of intermediaries and speculators.
Under these new measures, the Ministry of Interior is tasked with establishing a mechanism to purchase surplus local produce, store it, and then reintroduce it into the market at the first indications of price changes. This proactive intervention aims to safeguard citizens' purchasing power. Additionally, governors are entrusted with providing necessary spaces for storing essential goods, which will act as a market intervention tool to mitigate price surges caused by production shortages or other factors, by offering direct sales at prices that curb significant increases. The Ministry of Domestic Trade's role focuses on regulating profit margins for essential goods, obliging traders to adhere to specified limits to prevent excessive price hikes.
Mechdal observed that fresh agricultural products are often the most susceptible to market speculation and price volatility, frequently due to climate fluctuations or incidents such as summer fires affecting key northern production areas. He highlighted that Algeria often achieves high production levels in fresh produce, sometimes generating substantial surpluses, which makes the organization of production and yield management crucial. The expert called for encouraging farmers to invest in modernizing their production processes and urged government support for the private sector to invest in distribution chains, encompassing both logistics and appropriate transport solutions. Furthermore, he advocated for private sector investment in the processing industry for locally produced goods. Transforming fresh produce into processed products with longer shelf lives can alleviate pressure on fresh markets and establish a robust base for exports, as processed goods typically hold a higher value. A comprehensive medium to long-term plan for agricultural development, incorporating innovative production methods, storage, and distribution networks, would enable Algeria to establish platforms for international trade and build a strong export presence for its transformed agricultural products.
