Moroccan Merchants Face Economic Blow as Eid al-Adha Ritual Canceled

"We are already observing stagnation in several sectors, accompanied by a drop in prices that even affects the wholesalers’ capital. It’s important to remember that margins are low in wholesale trade, but losses can be very heavy," Saïd Farah, Secretary General of the Union of Merchants and Professionals of Derb Omar, told FreshPlaza. According to him, the most affected food products are spices, dried apricots, prunes, raisins, ginger, and legumes.

"Nearly 90% of spices are imported from India, and the majority of legumes, as well as other products like nutmeg and ginger, come from Egypt," specifies a wholesaler. He explains: "The sector is currently stagnant, with many merchants having already imported their stocks for Eid Al Adha at high prices. Prices collapsed after the announcement of the sacrifice ritual’s cancellation, and losses amount to 3 to 4 DH per kilo, and I’m talking about capital losses here, not lost profits. For some products, losses reach up to 20 DH per kilo."

According to the interviewed merchants, supply far exceeds demand, and major losses are expected. This situation is explained, according to them, by the fact that the product’s shelf life does not exceed three to four months. Their wish is for prices to rise as quickly as possible in order to overcome this difficult situation.

"Losses are even greater for other merchants, particularly those who imported entire containers of small tools specifically for the sacrifice ritual," says Saïd Farah, the wholesalers’ representative. He adds: "As a representative organization, we have a duty to convey their distress. But on the other hand, we are aware of the importance of canceling the sacrifice this year to contain inflation, which also affects us, as well as the purchasing power of our fellow citizens."