Prior approval is required before raising the price of more than 11,000 goods due to import costs

“Economy”: a new policy for “pricing” basic consumer goods to promote positive competition

The Ministry of Economy carries out periodic inspections of 300 of the most consumed basic commodities.

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The Ministry of Economy reported that it had approved a new policy regarding the pricing mechanism for basic consumer goods, so that goods are divided into two groups. The first is subject to the condition of prior approval in the event the supplier wishes to raise their price as a result of high import costs. This group includes more than 11 thousand goods, the most prominent of which are: Fresh and dry milk, fresh chicken and eggs, bread, flour, sugar, salt, rice and legumes, cooking oil, mineral water and more.

As for the second group of goods and products, the ministry indicated that they were exempted from the condition of prior approval, and that they are subject to the equation of supply and demand.

The ministry indicated, in a statement yesterday, that it carries out periodic inspections of 300 of the most consumed and demanded basic commodities in the country.

periodic monitoring

In detail, the Ministry of Economy confirmed that it carries out periodic monitoring operations for 300 of the basic commodities that are most consumed and demanded by consumers and the best sellers in the markets in all the emirates of the country, in partnership with the economic departments and a number of regulatory authorities at the local and federal levels, through a weekly follow-up to the work teams. The concerned authorities in these authorities, with more than 40 outlets and cooperative societies in all state markets, to monitor the prices of these commodities offered to consumers on the shelves.

The ministry explained that the 300 commodities fall into 11 main groups covering most categories of commodities, the most important of which are fish and seafood, meat and poultry, bread, grains and their products, dairy, cheese, eggs, oils, vegetables and fruits, water, juices, and cleaning materials, noting that it is continuing this type of activity. Control operations to follow up on the status of these commodities and their prices in the market, and the extent to which they are affected by international prices and price increases in the countries of origin, and to monitor any sharp changes in prices, and to ensure the availability of these commodities in abundant quantities that meet the needs of consumers in the country, and to maintain the required levels of the strategic stock of basic commodities.

The ministry also indicated that it is conducting a permanent comparison of the selling prices of these commodities with the prices installed in its registered database, and also comparing them with prices in neighboring countries, noting that it is working on developing a common digital database for commodity prices at the Gulf level, in order to ensure a comparison of prices. Flexible, fast and continuous.

The ministry also added that it matches the prices of these commodities with the FAO International Price Index for the most traded commodities in the world.

Goods' prices

The ministry explained that these comprehensive operations of control and follow-up paint a clear picture of the movement of commodity prices at the regional and global levels, as well as the local level, and enable it to develop proactive solutions that guarantee the vitality and momentum of the state's markets, and also allow it to verify the eligibility of any cases of price hikes in the country. The state and the rates of increase associated with it, if any, ensuring that unjustified price increases are not applied by suppliers, strengthening mechanisms to confront monopoly practices, and enabling sound commercial practices, in a manner that establishes a balanced and fair relationship between the supplier and the consumer, guarantees the rights of all parties, and enhances market stability and the continuity of the availability of goods And not to withdraw or disappear from the outlets.

new policy

The ministry explained that, based on these extended oversight efforts and close follow-up to the market movement, it approved 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 the event the supplier desires to raise its price as a result of The increase in import costs, by applying for a price increase through the electronic system designated for this service on the website of the Ministry of Economy, and providing all evidence and data regarding the increase in costs and their direct causes, so that the Ministry can study the request in a comprehensive manner and conduct a full review of the justifications, and then decide on the request, specifying The proposed increase percentage if approved, and this group includes more than 11,000 commodities that cover most products, most notably: fresh and dry milk, fresh chicken and eggs, bread, flour, sugar, salt, rice and legumes, cooking oil, mineral water, and others.

As for the second group of goods and products, the ministry indicated that it was exempted from the condition of prior approval, and that it is subject to the equation of supply and demand, explaining that these goods were selected based on their abundance and high price competitiveness, and the presence of a variety of suppliers of these goods, including It ensures that there are multiple alternatives to it in the various markets of the country, and thus guarantees the stability of its prices in a natural way according to market mechanisms. This group includes a limited category of commodities, most notably: biscuits, chocolate, and sweets of all kinds, some cheese products, frozen food products, juices, ice cream, tea, coffee and cocoa. And its products, wheat flakes, oats, potato chips products, and household cleaning materials and tools of all kinds.

The ministry indicated that this new pricing policy aims to ensure greater flexibility in the market, enhance confidence in the retail sector in the country, provide a healthy consumer environment, stimulate a conscious culture among consumers, as well as achieve an added value for shopping in the country, thus enhancing the position of the UAE as an attractive destination. For business and investment in the retail sector.

Rights are not limited to prices

The Ministry of Economy confirmed that the national efforts are concerted to implement the provisions of Federal Law No. (15) of 2020 regarding consumer protection in all state markets, which includes a wide system of consumer rights, not limited to aspects related to prices, the most important of which is providing an appropriate and safe environment when purchasing the product or receiving the service, obtaining the correct information about the goods that he buys, using or consuming or the service he receives, in addition to educating him and making him aware of his rights and obligations, and ensuring that he exercises his rights to choose the most appropriate product and service according to his desire, in addition to protecting the privacy and security of his data and not using it for purposes Promotion and Marketing.

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

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