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MoE steps up checks to ensure low prices are maintained

Measures to put the brakes on the increase in food prices, seen since the start of Ramadan, have been taken by the Ministry of Economy (MoE) , economic departments and municipalities.

"The campaigns are part of a plan that the ministry agreed with the economic departments and municipalities to stop grocer's shops exploiting consumers," Dr Hashim Al Nuaimi, Director of the MoE 's Consumer Protection Department, told Emirates Business.

"Grocers are buying supplies from co-operative societies and other major stores at low prices and reselling them to consumers at high prices," said Al Nuaimi.

"The ministry received many complaints last week that some grocers were increasing the prices of some items by 20 per cent compared with the amounts charged by co-operative societies and trade centres. In addition, the MoE 's inspectors noticed that some consumers were buying very large quantities from co-operative societies that sold them at cost price."

Al Nuaimi said the ministry had told co-operatives and wholesalers to monitor purchasing patterns and avoid selling large quantities of low-price goods. In addition they should give the names of buyers who were behaving suspiciously to the inspectors.

"Sixty-two major outlets, including co-operative societies, LuLu hypermarkets and Carrefour and Spinneys stores, control 85 per cent of the food market in the UAE, while the remaining percentage is purchased from grocer's shops," he said. The official said the MoE encourages consumers to buy from the major retailers, which stock fresh products and offer discounts. They are also subject to control by MoE , economic departments and municipalities.

"The MoE agreed with outlets and food importers that the prices of about 200 items would be reduced by between 10 and 30 per cent during Ramadan."

Al Nuaimi praised the role played by the Abu Dhabi Cooperative Society in the local market, saying that it helped to maintain stability by offering consumers a wide range of foods.

The MoE has fined stores in Abu Dhabi and Dubai that failed to display prices on products according to Article 29 of the executive list of federal law No 24 for 2006.

"Stores were also fined according to Article 28 which obliges sellers to display a card containing the name of the product in Arabic," ," said Al Nuaimi. About 55 sellers have been fined since the beginning of Ramadan.

Statistics show slight increase
Food prices in the capital rose by an average of 0.39 per cent during the first week of Ramadan compared with the previous week, a report by the Statistics Centre in Abu Dhabi has revealed.

The report is one of a series the centre plans to issue during the holy month to track daily food price movements.

The study said that the cost of bread and cereals rose by 1.51 per cent, oils and fats by 1.63 per cent, pulses by 2.07 per cent, sugar, jam, honey, chocolate and confectionery by 1.52 per cent, and coffee, tea and cocoa by 0.1 per cent. Mineral water, soft drinks and fruit juices increased by 0.35 per cent and other food products by 1.2 per cent.

On the other hand, the cost of meat dropped by 0.21 per cent, fish and seafood by 0.27 per cent, milk, cheese and eggs by 0.03 per cent and fruits by 1.97 per cent.

By Abdel Hai Mohamad

© Emirates Business 24/7 2009