ECONOMY

Market seeks alternative suppliers

market-seeks-alternative-suppliers

Local industry and retailers are seeking alternative suppliers in order to contain production costs and price hikes, but this is not always easy to achieve, as global commodity rates are in a steep rise due to the jump in demand and shipping costs.

The market acknowledges that the scope of reaction for itself and for the government is very limited, as the pace of price hikes is being determined by international developments beyond Greece’s control.

Changing suppliers is feasible in sectors such as toys, plastics and low-cost final products, with enterprises finding better prices in, say, India than in China. For instance, leading toy and homeware retailer Jumbo has turned to India for more of its merchandize, having already procured several products from that country in recent years. The problem, however, is that India has also imposed Covid-related restrictions that are affecting production, while the country does not have its own containers either.

Some industries, such as those in the chemicals sector, are now turning to suppliers in Europe; yet the increase in demand for raw materials both in Europe and the United States is generating a new wave of price hikes, amid lagging supply.