Artificial shortage of supply

Alexandoy

Member
We regularly experience shortage of food supplies like onions and rice which are farm produce. Upon investigation, it will be suspected an artificial shortage created by shrewd businessmen to have mire profit when they start their importation. One product that is suspect is sugar. That's why importation of sugar is not allowed so importers cannot maneuver the prices. And when there is artificial shortage, what can businesses do for their needed supplies?
 

tpicks

New member
Re: Artificial shortage of supply

This has been tactic used by businessmen to make prices go up before selling. They'll hoard goods and create artificial scarcity, when prices jump up they gradually make them available at exorbitant amounts. A development I'll term atrocious. We have suffered fuel scarcity resulting from artificial shortage of the supply. A liter that was supposed to be sold for 30 cents because of the artificial scarcity went for as high as $1.
A strong government regulatory body to curb the excesses of these depraved businessmen who perpetuate, aid and abet artificial shortage is what we need.
 

luri

New member
Re: Artificial shortage of supply

In my experience, there is artificial shortage of supply when there are rumors about price hike. For instance, in my home country government announced that gas price will be increased in a week. The announcement led to disruption in the gas supply. The suppliers stocked gas but did not sell to the consumers.
 

Gad

New member
Re: Artificial shortage of supply

I believe that this is the trend in almost all countries. At the end of the day, consumers are left struggling to purchase basic commodities. I think that powerful institutions such as the government and consumer protection agencies should be vocal about this and control it. At recent times, there has been a shortage of maize in my country. This has been created by farmers who hoard maize with the hope that prices will go up and they sell at profits. However, the government realised this and it began importing from outside the country. The farmers have seen that the situation is not favouring them and have started to release maize.
 

Jazmine

New member
Re: Artificial shortage of supply

The government has to strike a balance between protecting local manufacturers and keeping prices low by allowing unrestricted importation of goods like sugar, rice, garlic, and onion. Importing these items can indeed keep prices competitive but it will kill local producers/industries. When there's a basis for the shortage, like a prolonged dry spell, the government allows importation to stabilize supply and prices. It will be difficult for traders of these products to create artificial shortage to raise prices because the DTI sets price indices on prime commodities and unreasonable price increases will have to be justified. In addition, people have more options than ever because of free enterprise.
 
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