Tuesday, Sep 30, 2008

Gulf News

Abu Dhabi: Eid Al Fitr has brought good news for shoppers across the country as prices of three essential commodities have gone down by about six per cent, suppliers and retailers told Gulf News on Sunday.

Prices of non-basmati rice from Thailand (about 7.5 per cent), wheat flour (about four per cent) and milk powder (about 6.3 per cent) have come down, they said.

A 20-kilogramme bag of non-basmati rice from Thailand costs about Dh74 now, against Dh80 earlier. Prices of wheat flour in Dubai and Northern Emirates have also moved south by about Dh5 for a 50-kilogramme bag, which now costs Dh125-126, against the previous price for Dh131. Similarly, a 2.5-kilogramme pack of Nestle's Nido milk powder costs Dh74.25 now, as against about Dh79.25 earlier.

"We have reduced the prices, thanks to the fall in costs such as prices of milk and packaging, and other global financial trends like changes in currency exchange rate," a spokesman for Nestle told Gulf News. "It is a simple and straight logic - when costs go down, we cut the prices and as the market leader we take the initiative," he said.

Apart from global financial developments, a bumper harvest in Thailand has led to the fall in prices of rice imported from that country, a major supplier told Gulf News. "The wholesale prices have down from $1,500 [Dh5,517] for a metric tonne six months ago, to $7,90 now," said RS Shashi Kumar, sales manager of Al Rabiah Trading Company in Dubai.

Future hope

Emke Group, which runs the largest retail chain in the country, said customers may receive some more good news soon.

"We have already put into effect the new reduced prices in our outlets and expect some more suppliers to follow suit," Ashraf Ali MA, executive director of Emke Group, which runs LuLu Hypermarkets, told Gulf News.

"We are continuing discussions with suppliers of basmati rice and cooking oil and a positive outcome is expected by the end of this week," he said.

Customers welcomed the development. "It is quite unusual to know that prices are going down. But it must not be a ploy to cash in on Ramadan and Eid shopping," said Sainab, an Abu Dhabi resident.

Have you noticed a decrease in prices of the commodities? Would this help you spend less on Eid? What other items should be made cheaper for Eid?

Gulf News 2008. All rights reserved.