Rising prices: Madagascans are the endurance world champions!

They regularly used to sink into oblivion. Consumer associations do now stand to address these skyrocketing prices. The first shot was fired by the mobile phone line providers. “These providers merely simulate competition and offers wars on a daily basis, and in the end, they just prove to deal with each other the same way as oil companies do,” growled the president of the ASCOMA association, Lyms Rakotovao.

The Consumers’ Association called upon the Malagasy mobile phone users to let their discontent be known: “You have to restrict calls to a minimum level; we must make them feel how much we do protest by torpedoing their profits.” Such a mobilization of consumers has actually taken place before. The boycott of pork and urban transportation previously proved successful in keeping prices the way they used to be.

A general inflation for basic products

Gasoline consuming prices finally rose by MGAr 150 instead of the intended MGAr 300, and was told to be applied progressively. Another agreement between oil companies and the ruling power is expected to precede the imposition of genuine market prices by supplying companies and gas station managers. The first rise affected charcoal, the leading basic commodity for 80% of city dwellers. One bag’s price rose up from Ar 10 000 to Ar 20 000, and sometimes up to Ar 40 000 whenever rainfalls may be turned into a commercial advantage.

Meat is by 25% more expensive since the year 2012’ start. The resumption of zebu exports towards Mayottes reduced the quantity of available beef on the local shelves. A sharp drop of the demand is put forward as the cause as well as the consequence of the rising price wave. Fruits and vegetables are equally by 10 to 20% more expensive. The rising food prices are actually vastly more than likely to affect many Malagasy diets.

Faked promise

Politically motivated unrests and judicial plots ruined TIKO corporation three years ago. Many consumers do now miss the gold old time in which the “Vita Malagasy” brand (Made in Madagascar) was feeding its own people. Basic product prices used to be part of the excuse for launching a putsch in 2009. Rajoelina used to point at Tiko’s undisputed rule and boast his ability to bring the price liter of oil from Ar 3200 to Ar 2000 . Cheap oil from Middle Eastern friends seemingly remained in the Middle East. In 2012, a liter costs no less than Ar 5500

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Andry Rajoelina promised a home based solution concerning sugar, namely the resumption of the SIRAMA corporation’s production. The price per kilo reached however nearly Ar 3000, a bargain for every importer. The Malagasy market is, as a matter of fact, overloaded with low quality food products very close to the expiration date. No wonder that healthcare services repeatedly have to deal with massive food poisoning.

Finally, the gas is likely to increase by 20% and reach Ar 60,000 per 9 kg cylinder. Nevertheless, the Malagasy remain bound to come to terms with the rising costs of living. The illusion of being able to eat at will remains as long as rice costs less than Ar 2,000 per kg. Urban transport fares will equally go up by 30 or 60%, however not the minimum wage of Ar 100,000. The rate of people living below the poverty line may exceed 70% again.

All hail the HAT revolution!