Economy, Business And Markets
0

Economist Censures Gov’t Crackdown on Warehouses

Economist Censures Gov’t Crackdown on WarehousesEconomist Censures Gov’t Crackdown on Warehouses

Economists and businesspeople believe that cracking down on production units and warehouses, and treating them as criminals will have adverse consequences, as economic players will lose trust in the system. 
Economist Davoud Souri told the Persian weekly Tejarat-e Farda that what can cause chaos in the market is monopoly and not hoarding.
“The prerequisite for hoarding and stashing to cause disruption in the market is for the hoarder to have trade monopoly over a particular product. Then by withholding the good from entering the market, the hoarder can control and increase prices at any given time and gain a higher profit margin,” he said.
“Yet, not every minor supplier who, owing to economic circumstances, purchases goods and stores them to be able to sell them later can be prosecuted on charges of hoarding.”
Souri quoted economist Mohammad Tabibiyan as saying recently that there is no mention of hoarding in economic literature. 

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com