Traders in UAE need MoE’s approval to increase prices of 10 basic commodities

Gulf Today, Staff Reporter

The Higher Committee for Consumer Protection chaired by Abdullah Bin Touq Al Marri, Minister of Economy, on Sunday held a meeting, during which it discussed its comprehensive strategy for the upcoming stage with respect to strengthening the consumer protection system, raising the level of consumer awareness and increasing the efficiency of the market control mechanisms in the country.

The committee reviewed the pricing policy of basic consumer goods in the country, which was developed by the Ministry of Economy in co-operation with its partners from the concerned federal and local authorities and the private sector.

The policy is based on approving free prices in accordance with the supply and demand principles and in a manner that ensures the balance and stability of prices through the principle of competition and market mechanisms.

Excluded from this is a group of consumer goods related to the basic needs of citizens and residents, for which traders are obliged to obtain prior approval from the Ministry of Economy before applying any price increases.

These commodities include cooking oils, eggs, fresh milk, rice, sugar, fresh chicken, legumes, bread, flour and cleaning materials.

The maximum profit margin of each commodity will be determined for suppliers or traders.

In this regard, the committee recommended a team of member entities to be formed to consider and decide on requests for increasing commodity prices and submit regular reports to the committee.

The meeting also discussed a number of new policies and procedures in this regard including the consumer goods pricing policy, regulating the contractual relationship between distributors and sales outlets and developing the product recall mechanism.