Growing concerns as prices surge during ‘Support Local’ campaign

AMMAN — Advocates of the “Support Local” campaign are expressing concerns over a noticeable increase in prices for locally manufactured goods.

In response to the ongoing aggression in Gaza, Jordanian consumers initiated a boycott against products affiliated with the occupation, extending it to companies with research and development centres in occupied Palestine or those having sister companies supporting the occupation. 

This movement gained momentum, leading consumers to shift towards locally produced alternatives, thereby boosting demand for such products. However, consumers are now asserting that prices have surged alongside this heightened demand.

While the campaign aimed to stimulate local businesses and decrease reliance on imports, some argue that it may have unintended repercussions.

Economist Khaled Salameh told The Jordan Times that prices are primarily governed by principles of supply and demand. 

“As demand for locally manufactured goods increases, producers may respond by adjusting prices to meet the new market dynamics,” Salameh added.

Salameh highlighted that the delicate balance between fostering domestic businesses and maintaining affordability for consumers is a challenge that policymakers and businesses must navigate to ensure the sustainability and success of such campaigns. 

Balancing the economic aspects with the social and patriotic motives behind the campaign becomes crucial for achieving the desired outcomes without adversely affecting consumers, said Salameh.

Nadia Hunaity, a supporter of the “Support Local” initiative said that she is truly disappointed over the rising prices.

“I wholeheartedly wanted to contribute to our local economy, but it seems like the prices have skyrocketed...” she added. 

Hunaity highlighted that prices of cleaning detergents have surged by no less than 20 per cent.

“Jordanian consumers are price-sensitive; manufacturers should not take advantage of a humanitarian campaigns and raise their prices,” she said.

A business owner who opted to remain anonymous told The Jordan Times that local suppliers of food items are increasing their prices. 

“Prices of some locally manufactured products surpass prices of imported ones,” he claimed. “I was thrilled about the surge in demand for locally manufactured products. However, the increased prices are affecting my business as well,”he added. 

He emphasised that striking a balance between profitability and affordability is crucial for the success of his restaurant.

Hussein Omoosh, spokesperson for the Jordanian Society for Consumer Protection, told The Jordan Times that the society will check current and previous prices to list out companies that have increased the prices of their products.

“Our association rejects any unwarranted increase in prices, especially in the current climate where Jordanians are actively boycotting products that support the occupation. Prices must remain affordable for all consumers,” Omoosh said.

He also stressed that in a market driven by the “Support Local” campaign, it is imperative that locally produced merchandise competes not only based on patriotism but also on quality. Local businesses should strive to offer competitive prices without compromising the standard of their goods.

“Prices should reflect fairness and accessibility, ensuring that the ‘Support Local’ movement remains inclusive and beneficial for all members of our society,” Omoosh noted.

Omoosh highlighted that the Ministry of Industry, Trade and Supply could imposea price cap to safeguard consumers and preserve competition in the market. 

Despite several attempts by The Jordan Times to contact the Ministry of Industry, Trade and Supply, they were unavailable to comment.