Rising food prices hurt city’s ethnic markets

On August 14, 2008, in Uncategorized, by The News Staff

By Mia LamarEthnic_4

For many Somerville residents, the diverse array of ethnic food shops in Union Square are a treasured city destination.. The face behind the counter is a familiar one, and the special foods still a bargain. Yet, as commodity prices continue to rise, and incremental costs chip at the bottom line, many of the area’s beloved shop owners admit they are having a tough time maintaining business as usual.

Recent months have seen soaring food prices nearly across the board, from rice and flour, to meats and cheeses. Al Capone, owner of Capone Foods on Bow Street, said flour costs have shot up more than 300 percent, from $11 to now $35 a bag.

"It affects everything," said Capone, noting that while price hikes are not unusual, previous hikes would come in small, 10 to 25 cent increments. Now, he said, the cost he must pay for flour rises $5 to $6 with each shipment.

"And my electrical bill is just ridiculous," added Capone.

However, he also said he has found it difficult to make changes, a sentiment shared by his neighboring shop owners.

At WellFoods Plus, owner Rokeya Kabir said she is investing more than ever to maintain her inventory, yet she can’t significantly raise prices without the risk of isolating loyal customers, many of whom are already struggling to stay afloat themselves in today’s grim economic environment.

"We are paying from our pocket," said Kabir. "It’s crazy." She said costs for bags of lentils have doubled while costs for Halal meats, a specialty of her shop, continue to climb.

In each and every shop, owners offered a host of reasons for soaring food prices, including poor exchange rates, inflation, and rationing and profiteering abroad. One culprit, however, was cited unanimously: the staggering spike in the price of fuel.

Indeed, food shop owners are being hit doubly by the spike in fuel prices. Not only affecting the prices of commodity goods, the increase in fuel prices now materializes once more as higher charges for the shipping and transportation of those items. Kabir says she now must pay an extra $15 for the delivery of her products, a charge she says she simply cannot pass along to her groceries.

At La Internacional Foods, owner Byron Cabrera said his rice costs have gone up almost 100 percent. "They’re higher than they’ve ever been," he said.

The reason? "Diesel prices, of course," he said. But his prices? "Still the cheapest," according to Cabrera, whose family has run La Internacional Foods, a popular depot for Latin American and Haitian foods, for now almost 20 years.

For some, a little confidence goes a long way. At Little India, owner Umesh Mistri says he believes the price of rice is going down. Mistri explained the strict control several large suppliers have on the rice market, controls which he says are now loosening to allow more product into the market, thus allowing prices to dip. "Rice is going down," said Mistri. "They have to get rid of it."

Down at Capone Foods, Al Capone said he too believes tough times will sort themselves out. "It’s one big balance," he said. In the meantime, he said he is making small adjustments to manage the current situation. Higher-end cheeses, no longer selling as they once were, are being reportioned into smaller, more attractively priced pieces. Capone also says he relies heavily upon "a good foundation, of good products at reasonable prices."

"And people will come back," he said.

 

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