“All are worried about the consequences to their businesses such as squeezed margins, stock shortages, and the inability to ship the items on time,” said Nasheeda, Partner at Nishe Auditing on what her clients linked to the food trade plan to do. “In the short run, most seem to be in a reactive mode. Depending on the nature of the products, many are intending to pass on at least a part of the increased costs to customers as there is only so much squeeze on margins they can take. I have also seen businesses who have lost out on their pre-Ramadan season due to shipping delays.
“While it is not clear how long these uncertainties will continue, there are also worries that, even if the Russia-Ukraine crisis gets resolved, some of the increased prices are here to stay in the long run. If that happens, it means many businesses will have to take a relook at their business strategies to remain buoyant.”
For now, though, they are only intent on seeing through the Ramadan and Eid phase. And deliver no price pain on their consumers.