Israel to Adjust Supermarket Prices in 2027 Amid Import Quotas

Israel's Ministry of Economy has allocated duty-free import quotas for food products for 2027, aiming to boost market competition and curb rising prices. The measure is expected to increase product variety and reduce retailers' reliance on local suppliers. Companies linked to major supermarket chains such as "Osher Ad" and "Yohananoff" received quotas for items like frozen vegetables and grape juice from Europe. Israco, associated with the "Tiv Taam" group, secured significant quotas for olive oil, European and UK cheeses, pickled cucumbers, vegetable mixes, and wine. Major suppliers, including Unilever and Sugat, also received additional import quotas. However, experts caution that increased duty-free imports alone may not guarantee lower prices. Factors such as energy and fuel tariffs, transportation costs, logistics, and municipal fees will continue to influence final product prices. The ultimate impact on consumers will depend on how significantly the new policy alters market competition and incentivizes supermarkets to lower prices. This development follows a recent report indicating that global food prices reached a three-year high in August, attributed to extreme heat in Europe, the potential return of El Niño in Asia, and supply chain disruptions due to the ongoing war.