Business organizations unanimously agreed on the importance of supporting the president's initiative on tackling the commodity price crisis. The representatives of these organizations said that the problem of high prices has become a burden on the movement of macroeconomic because over time it would lead to a decline in consumption rates and then create a state of recession, which would affect everyone.
Mohamed Zaki El Sewidi head of the Federation of Industries Said that the Federation supports the President's initiative to cut prices under condition of providing foreign exchange to end stalled deals in ports, consisting of intermediate goods needed by the factories for the production of commodities and consequently providing goods to consumers because increasing the supply will decrease the price in the market. In addition to that industrial society welcomes and respects El Sisi President's initiative.
Engineer Hussein Sabbour Chairman of Businessmen Association also stressed that the business community welcomes the reduction rates because all classes in society are consumers in the first place and therefore we are all care for prevailing fair prices. He added said there is important thing threatens Egyptian economy currently, which is bureaucracy that delays everything asking the government to support businessmen in facilitating and treating administrative procedures.
Mohammed El Masry Vice-President of the Federation of Chambers of Commerce, said that he will meet in the coming days the heads of commercial divisions of Chambers of Commerce to discuss the possibility of reducing the profit margin from 10% to 5% as a positive initiative also noted that he will discuss with the Chamber whether commodity prices real or overvalued. He also ruled out the return of pricing system again as it is very difficult to apply the pricing system on imported goods, which comes from various sources such as electrical appliances on the contrary goods received from a single source, such as meat, poultry, cement and steel. He also is not in favor of applying pricing system on fruit and vegetables sector for applying the pricing system because they rely on daily factors like; season, supply and demand, transport, quality of sorting.
Mounir Ragheb, head of Timber Division also added that there is false information that the traders 'profit is over 40% and this is something wrong because the net profit of importers of timber does not exceed 7% and that the timber can be stored with many precautions necessary to prevent dry or damage and 95% of importers of timber do not have large spaces for storing their goods and therefore they cannot storing wood product to raise its price in the coming season.
