A new policy on the “price” of basic consumer goods to foster positive competition

The Ministry of Economy announced that it had adopted a new policy regarding the pricing mechanism for basic consumer goods, so that goods are divided into two groups, the first being the condition of prior approval in case the supplier wants to increase their price . as a result of high import costs.This group includes more than 11 thousand goods, among which the most prominent are: fresh and dry milk, fresh chicken and eggs, bread, flour, sugar, salt, rice and legumes, cooking oil, minerals. water and more. Regarding the second group of goods and products, the ministry indicated that they are exempt from the condition of prior approval and that they are subject to the equation of supply and demand.

The ministry announced yesterday that it conducts periodic inspections of the 300 most consumed and demanded basic goods in the country.

periodic monitoring

In detail, the Ministry of Economy confirmed that it conducts periodic monitoring operations for 300 of the most consumed and most demanded basic goods by consumers and best sellers in markets across the UAE, in partnership with economic departments. and a number of regulatory authorities at the local and federal levels, through a weekly follow-up of work teams. Relevant authorities in these authorities, with more than 40 points of sale and cooperating companies in all state markets, monitor the prices of these goods offered to customers on the shelves.

The ministry explained that the 300 goods are divided into 11 main groups covering most of the categories of goods, the most important of which are fish and seafood, meat and poultry, bread, cereals and their products, milk, cheese, eggs, oils , vegetables and fruits. , water, liquids and cleaning materials, noting that this type of activity is ongoing. Control operations to track the status of these goods and their prices in the market, as well as the extent to which they are affected by international prices and pricing. increases in countries of origin and to monitor any sharp price changes and to ensure the availability of these goods in abundant quantities that meet the needs of consumers in the country and to maintain the required levels of strategic stock of basic goods. .

The Ministry also indicated that it is making a permanent comparison of the selling prices of these goods with the prices installed in its registered database, as well as comparing them with the prices in neighboring countries, noting that yes works to develop a common digital database for goods. Prices at Gulf level, to ensure a price comparison, flexible, fast and continuous. The ministry also added that the prices of these goods are in line with the FAO International Price Index for the most traded goods in the world.

Commodity prices

The Ministry explained that these comprehensive control and tracking operations present a clear picture of commodity price movements at the regional and global levels, as well as at the local level, and enable it to develop proactive solutions that guarantee vitality and momentum. of state markets, as well as to allow to verify the suitability of any case of price increase in the country. State and related growth rates, if any, ensuring that unjustified price increases are not applied by suppliers, strengthening mechanisms to deal with monopoly practices and enabling sound trade practices, in a way which establishes a balanced and fair relationship between supplier and consumer, guarantees the rights of all parties and enhances market stability and continuity of goods availability and does not pull or disappear from the outlets.

new policy

The Ministry explained that, based on these enhanced surveillance efforts and close tracking of market movement, it adopted a new policy regarding the pricing mechanism for basic consumer goods, through which these goods are divided into two main groups: the first is subject to the condition of prior approval in case the supplier wants to increase its price as a result of increased import costs, applying for price increase through the electronic system designated for this service on the website of the Ministry of Economy, and insurance of all evidence and data regarding the increase in costs and their direct causes, so that the Ministry can study the request comprehensively and make a full review of the justifications and then decide on the request, specify the proposed growth rate if approved. , and this group includes more than 11,000 commodities that cover most products, in particular: fresh and dried milk, fresh chicken and eggs, bread, flour, sugar, salt, rice and legumes, cooking oil, mineral water, etc.

Regarding the second group of goods and products, the ministry indicated that it was exempt from the condition of prior approval and that it is subject to the equation of supply and demand, explaining that these goods were selected on the basis of abundance and high price. . The competitiveness and presence of a variety of suppliers of these goods, including ensures that there are numerous alternatives to it in the various markets of the country, and thus guarantees the stability of its prices naturally according to market mechanisms. the group includes a limited category of goods, in particular: biscuits, chocolate and confectionery of all kinds, some cheese products, frozen food products, juices, ice cream, tea, coffee and cocoa. And its products, wheat flakes, oats, potatoes chips products and home cleaning materials and tools of all kinds.

The Ministry stressed that this new pricing policy aims to provide greater flexibility in the market, increase confidence in the retail sector in the country, provide a healthy consumer environment, stimulate a conscious culture among consumers, and achieve added value for in-country purchases, thus enhancing the UAE’s position as an attractive destination.For business and investment in the retail sector.

Rights are not limited to prices

The Ministry of Economy confirmed that national efforts are coordinated to implement the provisions of Federal Law no. the most important of which is to provide a suitable and safe environment when purchasing the product or receiving the service, obtaining accurate information about the goods it buys, uses or consumes or the service it receives, in addition to its education and awareness. of his rights and obligations, as well as to ensure that he exercises his rights to choose the most appropriate product and service of his choice, in addition to protecting the privacy and security of his data and not using them for Promotion and Marketing purposes.

• New pricing mechanism: two groups of basic goods, the first is subject to the condition of approval before the price increase and includes more than 11 thousand goods and the second does not require prior approval and is subject to the equation of supply and demand, and includes a limited category of goods.

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