Prices spiral despite government warning
Despite the Ministry of Economy (MoE) and local municipalities sternly warning suppliers, supermarkets and stores against any unauthorised hikes in prices of essential food items, following the recent federal decision announcing a 70 per cent salary hike for federal employees in all emirates, consumers have complained that prices have already shot up by nearly 30 per cent. The salary hikes, it may be noted, come into effect from January 2008. But the prices have allegedly shot up even before that.
In Sharjah and Ajman, a big size Nido milk powder tin which was earlier selling at Dh55, is now coming for Dh65 in some hypermarkets and at Dh75 in others. Egg prices in Sharjah and Ajman too are reported to have moved northward. While a tray of 24 eggs earlier came at Dh12, the same now costs around Dh20. Prices of flour, oil and sugar too are reported to have leapfrogged by 30-35 per cent, though the exact amount differs in different supermarkets.
Speaking to Khaleej Times, Yahya Al Raysa, head of the Trade Licence Directorate at Ajman Municipality, said that the civic body, in a meeting with managers of hypermarkets, shopping centres and supermarkets on November 28 last, had warned them against raising the prices of essential commodities, especially after the Ajman Ruler also announced a 70 per cent salary hike for all Ajman government employees.
Al Raysa said the municipality had specifically asked the managers of stores to submit a daily list of receipts of sale of all food items so as to keep tabs on the prices.
"The managers of supermarkets and stores pointed out to us that the increase in prices first came from the importers and manufacturers," Al Raysa said, while adding that the managers of the supermarkets were all warned not to hike prices without approval from the municipality.
Al Raysa said the Municipality would continue its daily inspection drive so as to keep tabs on the prices of essential items.
The Sharjah Municipal Council too recently held a meeting to discuss the increase in prices of daily consumer products, including the bread price hike by bakeries. The meeting proposed measures to check unauthorised price hikes. The proposals included intensifying of inspection campaigns by the civic body inspectors.
Dr Jamal Al Saeedi, consultant at the Consumer Protection Union (CPU) in the UAE, said there had been a significant increase in the prices of essential commodities in the UAE. "A number of UAE residents have complained that the prices of most of the essential commodities, including flour, milk, meat and gas, have shot up by 10-15 per cent.
Dr Al Saeedi pointed out that in the past one week, egg prices had leapfrogged by almost 28 per cent, which, he said, was triggered mainly by the ban on import of eggs from Saudi Arabia following the detection of bird flu cases in the Kingdom.
But the official explained that a number of suppliers of other commodities had hiked the prices in the current year citing high costs of production and huge losses they claimed to have incurred.
"The government is monitoring the situation and has set up committees to keep tabs on the prices. The ministry has been supporting the CPU, which tries to protect the interest of consumers in the UAE," he said.
Meanwhile, officials of Dubai Municipality said they too were keeping tabs on supermarkets and groceries and were also holding regular meetings in order to prevent the prices from spiralling.
An official of DM who did not want to be named said, "So far we have not received any complaints of a sudden hike in prices of essential items. Our inspectors are regularly monitoring the groceries and supermarkets. If we come across any instance of an unauthorised price hike, we carry out an investigation and do take appropriate action." Source
In Sharjah and Ajman, a big size Nido milk powder tin which was earlier selling at Dh55, is now coming for Dh65 in some hypermarkets and at Dh75 in others. Egg prices in Sharjah and Ajman too are reported to have moved northward. While a tray of 24 eggs earlier came at Dh12, the same now costs around Dh20. Prices of flour, oil and sugar too are reported to have leapfrogged by 30-35 per cent, though the exact amount differs in different supermarkets.
Speaking to Khaleej Times, Yahya Al Raysa, head of the Trade Licence Directorate at Ajman Municipality, said that the civic body, in a meeting with managers of hypermarkets, shopping centres and supermarkets on November 28 last, had warned them against raising the prices of essential commodities, especially after the Ajman Ruler also announced a 70 per cent salary hike for all Ajman government employees.
Al Raysa said the municipality had specifically asked the managers of stores to submit a daily list of receipts of sale of all food items so as to keep tabs on the prices.
"The managers of supermarkets and stores pointed out to us that the increase in prices first came from the importers and manufacturers," Al Raysa said, while adding that the managers of the supermarkets were all warned not to hike prices without approval from the municipality.
Al Raysa said the Municipality would continue its daily inspection drive so as to keep tabs on the prices of essential items.
The Sharjah Municipal Council too recently held a meeting to discuss the increase in prices of daily consumer products, including the bread price hike by bakeries. The meeting proposed measures to check unauthorised price hikes. The proposals included intensifying of inspection campaigns by the civic body inspectors.
Dr Jamal Al Saeedi, consultant at the Consumer Protection Union (CPU) in the UAE, said there had been a significant increase in the prices of essential commodities in the UAE. "A number of UAE residents have complained that the prices of most of the essential commodities, including flour, milk, meat and gas, have shot up by 10-15 per cent.
Dr Al Saeedi pointed out that in the past one week, egg prices had leapfrogged by almost 28 per cent, which, he said, was triggered mainly by the ban on import of eggs from Saudi Arabia following the detection of bird flu cases in the Kingdom.
But the official explained that a number of suppliers of other commodities had hiked the prices in the current year citing high costs of production and huge losses they claimed to have incurred.
"The government is monitoring the situation and has set up committees to keep tabs on the prices. The ministry has been supporting the CPU, which tries to protect the interest of consumers in the UAE," he said.
Meanwhile, officials of Dubai Municipality said they too were keeping tabs on supermarkets and groceries and were also holding regular meetings in order to prevent the prices from spiralling.
An official of DM who did not want to be named said, "So far we have not received any complaints of a sudden hike in prices of essential items. Our inspectors are regularly monitoring the groceries and supermarkets. If we come across any instance of an unauthorised price hike, we carry out an investigation and do take appropriate action." Source
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