17 May 2010
KUWAIT: Senior officials at local Cooperative Societies have denied reports of impending price increases at Co-op outlets in the next few months. Speaking to the Kuwait Times, officials at two local co-ops denounced speculation that prices might increase due to product cost manipulation before the start of the holy month of Ramadan at the beginning of August. In the meantime, a news report quoted the head of the newly-formed 'prices supervision committee' Muhammad Al-Jabry, who said that the committee will publicly name any co-op that increases prices by itself, without the consent of the Kuwait Union of Cooperative Consumer Societies (UCCS).
The number of supervisors has been increased from three to seven, and the penalty for violating price regulations was strengthened," Al-Jabry told a local paper, one day prior to the committee's first meeting. Representatives of various co-ops in Kuwait confirmed that prices will not be increased.
There will not be any increase in prices this year," said Fahad Abdulrahman, the commercial manager of the Subahiya Co-op Society. "We are always trying to help the consumer, and that's why we organize price busting campaigns before and during Ramadan because the consumer is our main concern.
Speaking in a telephone interview yesterday, Abdulrahman explained that the Ministry of Commerce and Industry had expected price increases to be introduced last year and was surprised when none took place. "[Co-op prices] were almost 35 percent below the retailers' prices," he noted. The official reassured consumers that the Co-ops would not allow any price manipulation by merchants, adding, "We try to provide an alternative if a supplier insists on increasing the price unreasonably.
Abdulrahman further explained, however, that some suppliers try to reduce the net weight of products rather than increase the price. "There is the example of sodas that used to be produced in 330 ml bottles, which have now been replaced by 250 ml bottles; there's also a brand of frying oil that was reduced from two litters to 1.8 litters. This way the supplier chooses not to increase the price of the product, and instead just cut the net weight by 200 ml," he explained.
Muhammad Abu Al-Hassan, the market manager at Khaldiya Co-op Society, also believes that there is no reason to assume prices might increase in the next few months. "There are numerous products that we frequently offer below their average prices; we organize a price busting campaign every one or two months, where suppliers offer great deals for consumers," he said. Abu Al-Hassan added that price increase rumors are baseless, because the Co-op union is in charge of setting purchase prices, and will not allow any price increase by suppliers.
KUWAIT: Senior officials at local Cooperative Societies have denied reports of impending price increases at Co-op outlets in the next few months. Speaking to the Kuwait Times, officials at two local co-ops denounced speculation that prices might increase due to product cost manipulation before the start of the holy month of Ramadan at the beginning of August. In the meantime, a news report quoted the head of the newly-formed 'prices supervision committee' Muhammad Al-Jabry, who said that the committee will publicly name any co-op that increases prices by itself, without the consent of the Kuwait Union of Cooperative Consumer Societies (UCCS).
The number of supervisors has been increased from three to seven, and the penalty for violating price regulations was strengthened," Al-Jabry told a local paper, one day prior to the committee's first meeting. Representatives of various co-ops in Kuwait confirmed that prices will not be increased.
There will not be any increase in prices this year," said Fahad Abdulrahman, the commercial manager of the Subahiya Co-op Society. "We are always trying to help the consumer, and that's why we organize price busting campaigns before and during Ramadan because the consumer is our main concern.
Speaking in a telephone interview yesterday, Abdulrahman explained that the Ministry of Commerce and Industry had expected price increases to be introduced last year and was surprised when none took place. "[Co-op prices] were almost 35 percent below the retailers' prices," he noted. The official reassured consumers that the Co-ops would not allow any price manipulation by merchants, adding, "We try to provide an alternative if a supplier insists on increasing the price unreasonably.
Abdulrahman further explained, however, that some suppliers try to reduce the net weight of products rather than increase the price. "There is the example of sodas that used to be produced in 330 ml bottles, which have now been replaced by 250 ml bottles; there's also a brand of frying oil that was reduced from two litters to 1.8 litters. This way the supplier chooses not to increase the price of the product, and instead just cut the net weight by 200 ml," he explained.
Muhammad Abu Al-Hassan, the market manager at Khaldiya Co-op Society, also believes that there is no reason to assume prices might increase in the next few months. "There are numerous products that we frequently offer below their average prices; we organize a price busting campaign every one or two months, where suppliers offer great deals for consumers," he said. Abu Al-Hassan added that price increase rumors are baseless, because the Co-op union is in charge of setting purchase prices, and will not allow any price increase by suppliers.
By Ahmad Saeid
© Kuwait Times 2010
