Crafts: what has been the impact of the explosion in world commodity prices?

Crafts: what has been the impact of the explosion in world commodity prices?

Contrary to hoteliers who are recovering thanks to the increasing arrivals of foreign visitors, craftsmen have to face a new crisis generated by the Russia-Ukraine conflict. This caused a huge increase in the cost of inputs and disrupted their supply chain.

Commodity prices doubled

the President of the Chamber of Crafts of Fez confirms that the sector is still not out of the crisis. To illustrate his point, he cites the example of craftsmen who placed an order for raw materials at a certain price before the start of the conflict, and found themselves with an unmanageable increase exceeding 100%.

Abdelmalek Bouteyine thus teaches us that the yellow copper which cost 70 dirhams per kilo in 2021 is no longer available at less than 170 DH/kg, while the red which was at 90 DH/kg reaches peaks at 200 DH/kg.

“Stop speculators who take advantage of the global context to impose their prices”

While he considers it normal to have to pay a price increase, our interlocutor finds the strong speculation recently generated by certain importers of raw materials, who have formed a quasi-monopoly without control from the public authorities, much less fair. .

Four in number, these groups impose, according to him, inflated selling prices by occasionally organizing stock shortages which cause, ultimately, high inflation of imported products.

Citing the example of coppersmiths who import copper containers three times a year, Bouteyine affirms that the majority of transactions organized by these import companies are often accompanied by a lack of control in terms of invoicing and declaration of taxes from the tax office.

“The explosion in the price of container transport has not helped”

The president of the craftsmen of Fez also mentions the sharp increase in the cost of transport by container of the ordered inputs, the price of which rose from 9,000 to 30,000 DH before the Covid crisis, up to 200,000 DH today.

Pessimistic about the future of a sector that generated billions of dirhams in 2019, Bouteyine advocates increased control by the authorities to put an end to speculation. It also recommends the creation of a compensation mechanism, like gas, sugar… and more recently taxis and tourist carriers affected by the rise in the price of diesel.

“A public subsidy to offset rising input prices”

the President of the Chamber of Crafts of Marrakech also calls for the temporary establishment of a subsidy to compensate for the rising cost of various imported inputs such as copper, glass, wood, glue, nails, etc.

In the absence of visibility on the end of the conflict in Europe which is disrupting all global supply chains, Hassan Choumais argues that the collateral victim that is the craft industry will not find the same level of activity nor the turnover of 2019 before, at least, the year 2023.

Leave a Comment

Your email address will not be published.