In Addis Ababa city, price of one kilogram of onion has risen significantly. Several other commodities are also seeing a sharp rise in price. Reportedly, one kilogram of onion is being sold for 120 birr by some traders.
Addis Ababa Chamber of Commerce has announced that onion products of different grades are being sold in Saturday markets for 40 to 60 birr per kilo. However, some commercial establishments are selling it for up to 120 birr, Director of the Communications Affairs Directorate of the Addis Ababa City Administration Commercial Bureau, Sewunt Ayele said yesterday.
The director stated that there is a similar situation in the shopping centers built by the city administration as well. Moreover, he stated that there are parties which illegally increase prices not only on onions, but also on other commodities and products too. He said that action is being taken against them. He also stated that the increase in the price of onion has nothing to do with macroeconomic reforms. Onion is a domestic product and its price is not linked to the increase in the value of dollar.
Written warning is being issued to traders who have increased prices on onions and fines are being imposed, say city government officials. The authorities are trying to increase the supply of products to make them accessible to everyone.
For around two weeks, Ethiopian currency birr has been rapidly declining against US dollar and other foreign currencies. The fall in the value of birr is the result of liberalization of foreign exchange market, introduced by the Ethiopian government earlier this month. Experts have been warning that devaluation of birr could lead to a rise in inflation.
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Very interesting news