Prices of commodities in Bahrain are expected to plummet as new stocks hit the shop shelves, MPs were told.

Market prices are dropping as old stocks sell out and new stocks arrive, Industry and Commerce Minister Dr Hassan Fakhro told parliament.

But consumers would have to be patient, as it will take time for old stocks to clear, he said.

'In December, we recorded that 93 per cent of the main commodities had dropped in price and this is also noticed in building materials as the Emirati tonne of steel has dropped from BD700 to BD232.5, which is around 67 per cent ,' said Dr Fakhro.

'The prices drop is not magical and it takes six months for new stock to enter the country, so the newer the stock, the cheaper it would be.

'But we can't force merchants to stop selling their old stock and sell the new, considering that many order stocks for three months.'

Dr Fakhro stressed that the ministry was working hard to ensure there were no monopolies or cheating in prices.

'We are monitoring the market carefully to ensure there are no monopolies or cheating in prices and are taking action wherever needed, but we can't control prices as this would contradict open market policies,' he said.

'The country has also come up with monetary measures to ensure the purchasing strength of the dinar and is currently working with other GCC countries to start a bulk purchase of products.

'We have already signed agreements with different countries like Thailand, the Philippines and Turkey to provide cheaper substitute products in the market - for example, rice, fruits and vegetables.'

Dr Fakhro was responding to a question by parliament financial and economic affairs committee vice-chairman Abdulhaleem Murad, on the effect of global financial crisis on prices in the country.

'We don't have a prediction on the direction prices will go, considering that markets are seeing a constant change,' said Dr Fakhro.

'But, indicators show that prices would see more decreases this year.'-TradeArabia News Service