Tuesday, Jan 13, 2009
Gulf News
Dubai: Leading food products maker Nestle has agreed to reduce the prices of milk products by 15 per cent in line with global price trends.
The UAE Ministry of Economy said the price reduction became effective yesterday and was part of the ministry's efforts to reduce essential commodity prices in the country.
The price reduction covers Nido milk powder, which will now be priced at Dh63 for a pack of 2.5 kilogrammes from Dh74.50 earlier.
Hashim Al Nuaimi, director of Consumer Protection Department at the Ministry of Economy, said that the ministry is committed to strengthening co-ordination with the suppliers of various essential commodities to ensure that the prices are reduced in line with international trends."The ministry is keen to ensure market stability by preventing manipulators from hiking commodity prices," he said.
Al Nuaimi recently chaired a meeting with the milk suppliers from all over the UAE and discussed the issue of reducing milk powder prices in order to match the 50 per cent fall of milk prices internationally. The suppliers, thereupon, agreed to reduce milk powder prices.
V. Nandakumar, a spokesman for LuLu Hypermarket chain said prices of milk powder have been declining since November.
"We expect prices to further come down. We are already talking to the leading suppliers in this regard," Nandakumar said.
Kamal Vachani, director of Al Maya group, said most dairy products "are sold either at cost price or at a very thin margin because they are essential food items."
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