1998News

Food prices high because of protectionism

Economist Andrés Dauhajre charged that the government has lacked political will to put a stop to the high food prices that affect Dominican consumers. He says that the powerful groups that oppose the opening of Dominican markets are responsible for the high local food prices. Producers allege that once importers get a hold of the Dominican market, they too will increase prices. Meanwhile, Dauhajre says that rice, fertilizers, edible oils, onions, and beans all sell here for more than in Central America. He pointed out that rice is 45% more expensive here than in Central America; a pound of red beans sells for RD$12.50, while it sells for RD$6.27 in Central America; a liter of milk sells for RD$14.50 here and for RD$8.60 in Central America. Sugar costs 25% more here. In a recent article in the Listin Diario on Sunday, 27 March, Dauhajre satirized the argument that Dominican industry is too young to compete with other nations. He says that the rum industry, for example, is barely 146 years old, the textile industry is only 54 years old, the edible oils industry is 48 years, fertilizers industry has only been in existence for 47 years. He says that if the protectionism continues, the producers will later be able to argue that it is unfair to allow competition against the poor senile industries.