A significant rise in the prices of essential commodities in the UAE has put consumers in a tight spot.
Authorities say that price rise has become an international tendency and has nothing to do with the drop in the dollar rate. They also say that suppliers are demanding a minimum hike of 10 per cent in essential commodities.
The increase has hit residents and businesses hard by upsetting budgets. People across the country have urged authorities to curb the trend.
An official from Farzana Trading, a wholesale distributor of consumer products in Dubai, said, "The trend of increase in the prices of consumer products is continuing as suppliers are demanding more money than before."
Grocery shops and supermarkets in the country confirmed that they, too, were struggling with the trend as customers are upset over the price factor.
Nanda Kumar, Communication Manager of Emke GroupEmke Group, which runs Lulu SupermarketLulu Supermarket chain, said, "The instability of the U.S. dollar has caused the sudden price increase. The currencies in the supplying countries have become stronger against U.S. dollar. As a result, we have to pay more to the suppliers."
According to supermarket and groceries in Dubai, the prices of poultry, frozen food and milk products have increased by a little over 10 per cent.
Cashier T. Latif at Dubai-based Makawi Grocery points out that the price of 39kg of rice has gone up from Dh129 to Dh145 since June. "The price of 10kg of wheat increased by Dh2, from Dh14. Sugar has also increased by Dh2, whereas previously it was Dh18 for 12kg. Even two-litre milk can, which came for Dh8.50, is now costing Dh9," he observes.
Shop assistant Huda. M, who did not wish to name her company, concedes that the price rise has left customers upset.
"They think that we are overcharging them even though we try and give discounts. In fact, about 10 customers in the last one week have come back and returned goods after realising that there has been a variation in the price," she says.
Customer Shivkumar points out that prices of all lentils have gone up. "Water prices have increased by Dh1. Cooking gas has risen drastically from Dh69 to Dh76. Milk prices have gone up by 50 fils. We don't come to know about the price rises until it is scrutinised. The increase in the price of some commodities like milk is very negligent. However, when I do my monthly shopping and buy in huge quantities, it really hits my pocket," he says.
Prices of basic commodities in Abu Dhabi markets are also witnessing a gradual hike. Consumers express their keen desire to see the Consumer Protection Department at the Ministry of Economy assume a greater role in controlling prices. Mohammed Al Dali, an engineer working with Public Works Department, said, "Prices of powdered milk have risen by 25 per cent.Price revision urged Most cafeterias and restaurant operators in the capital want the prices of foods at eateries be revised as the prices of raw materials have increased.
"For the past few years, the prices of many raw materials have been rising. So, we have increased prices of some food items in by at least 25 fils. This hike is only on those items that are made from raw materials whose prices have gone up such as flour and oil," said Haider, a cafeteria owner on Elektra Street.
The price of 50kg wheat flour (maida) bag which used to be Dh40 around two years ago is now Dh82. Pulses, which were sold at Dh35 for 20kg bag around four years ago is now Dh100 for a 17kg pack. Similarly, edible oil which was sold at Dh40 for 20 litres, now costs Dh35 for 10-litre pack, said Haider.
Abdul Aziz who works at Hud Hud Refreshment at Al Falah Street in the capital, said, "We want to revise prices in our menu. Prices of all materials used in a burger have gone up. Prices of French fries have reached Dh65 a carton from Dh30. A 5kg cheese pack which was earlier at Dh90, is now costing Dh135."Panels studying revision of prices Dr Jamal Al Saaeedi, Consultant, Consumer Protection Union in the UAE, said the government is aware of the economic situation which is normally directly and indirectly affected by the international economy.
"The Ministry of Economy has set up committees to revise and study the price hike. However, the ministry is not expected to make a decision soon," he added.
Dr Saaeedi said that suppliers had sent letters to the Ministry of Economy regarding their plans to hike the prices within the current year due to the high cost of production and huge losses as they claimed.
"Most of them asked for at least 10 per cent hike, but the Ministry of Economy does not give them approval on the spot. It will conduct a thorough study on the UAE market performance, production cost, and the international markets before issuing decisions."
He added that the ministry has been supporting the Consumer Protection Union which has spurred a crucial policy change at the UAE level to protect the consumers at large.
"The ministry has reviewed indexes of new prices for commodities and services prepared by a work team responsible for controlling markets and prices in the UAE, adding that a monthly price bulletin will be published by the ministry.
Regarding the role of CPU, he said that it will most likely work as a watchdog. "The CPU, in an effort to curb price manipulation and allow unrestricted imports of basic food products, cooperates with the Ministry of Economy and departments of Litigations and Fatwa to eliminate price hike of basic food," he explained. Source
Authorities say that price rise has become an international tendency and has nothing to do with the drop in the dollar rate. They also say that suppliers are demanding a minimum hike of 10 per cent in essential commodities.
The increase has hit residents and businesses hard by upsetting budgets. People across the country have urged authorities to curb the trend.
An official from Farzana Trading, a wholesale distributor of consumer products in Dubai, said, "The trend of increase in the prices of consumer products is continuing as suppliers are demanding more money than before."
Grocery shops and supermarkets in the country confirmed that they, too, were struggling with the trend as customers are upset over the price factor.
Nanda Kumar, Communication Manager of Emke GroupEmke Group, which runs Lulu SupermarketLulu Supermarket chain, said, "The instability of the U.S. dollar has caused the sudden price increase. The currencies in the supplying countries have become stronger against U.S. dollar. As a result, we have to pay more to the suppliers."
According to supermarket and groceries in Dubai, the prices of poultry, frozen food and milk products have increased by a little over 10 per cent.
Cashier T. Latif at Dubai-based Makawi Grocery points out that the price of 39kg of rice has gone up from Dh129 to Dh145 since June. "The price of 10kg of wheat increased by Dh2, from Dh14. Sugar has also increased by Dh2, whereas previously it was Dh18 for 12kg. Even two-litre milk can, which came for Dh8.50, is now costing Dh9," he observes.
Shop assistant Huda. M, who did not wish to name her company, concedes that the price rise has left customers upset.
"They think that we are overcharging them even though we try and give discounts. In fact, about 10 customers in the last one week have come back and returned goods after realising that there has been a variation in the price," she says.
Customer Shivkumar points out that prices of all lentils have gone up. "Water prices have increased by Dh1. Cooking gas has risen drastically from Dh69 to Dh76. Milk prices have gone up by 50 fils. We don't come to know about the price rises until it is scrutinised. The increase in the price of some commodities like milk is very negligent. However, when I do my monthly shopping and buy in huge quantities, it really hits my pocket," he says.
Prices of basic commodities in Abu Dhabi markets are also witnessing a gradual hike. Consumers express their keen desire to see the Consumer Protection Department at the Ministry of Economy assume a greater role in controlling prices. Mohammed Al Dali, an engineer working with Public Works Department, said, "Prices of powdered milk have risen by 25 per cent.Price revision urged Most cafeterias and restaurant operators in the capital want the prices of foods at eateries be revised as the prices of raw materials have increased.
"For the past few years, the prices of many raw materials have been rising. So, we have increased prices of some food items in by at least 25 fils. This hike is only on those items that are made from raw materials whose prices have gone up such as flour and oil," said Haider, a cafeteria owner on Elektra Street.
The price of 50kg wheat flour (maida) bag which used to be Dh40 around two years ago is now Dh82. Pulses, which were sold at Dh35 for 20kg bag around four years ago is now Dh100 for a 17kg pack. Similarly, edible oil which was sold at Dh40 for 20 litres, now costs Dh35 for 10-litre pack, said Haider.
Abdul Aziz who works at Hud Hud Refreshment at Al Falah Street in the capital, said, "We want to revise prices in our menu. Prices of all materials used in a burger have gone up. Prices of French fries have reached Dh65 a carton from Dh30. A 5kg cheese pack which was earlier at Dh90, is now costing Dh135."Panels studying revision of prices Dr Jamal Al Saaeedi, Consultant, Consumer Protection Union in the UAE, said the government is aware of the economic situation which is normally directly and indirectly affected by the international economy.
"The Ministry of Economy has set up committees to revise and study the price hike. However, the ministry is not expected to make a decision soon," he added.
Dr Saaeedi said that suppliers had sent letters to the Ministry of Economy regarding their plans to hike the prices within the current year due to the high cost of production and huge losses as they claimed.
"Most of them asked for at least 10 per cent hike, but the Ministry of Economy does not give them approval on the spot. It will conduct a thorough study on the UAE market performance, production cost, and the international markets before issuing decisions."
He added that the ministry has been supporting the Consumer Protection Union which has spurred a crucial policy change at the UAE level to protect the consumers at large.
"The ministry has reviewed indexes of new prices for commodities and services prepared by a work team responsible for controlling markets and prices in the UAE, adding that a monthly price bulletin will be published by the ministry.
Regarding the role of CPU, he said that it will most likely work as a watchdog. "The CPU, in an effort to curb price manipulation and allow unrestricted imports of basic food products, cooperates with the Ministry of Economy and departments of Litigations and Fatwa to eliminate price hike of basic food," he explained. Source
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