Among them are reports on production costs and prices during the previous 3 years and justifications for the "increase".

The Economy: 10 conditions for considering requests to raise commodity prices

"Economy": Rice is a commodity that requires prior approval before any price increases are applied to it.

Photography: Eric Arazas

The Ministry of Economy has set 10 conditions and demands to consider requests submitted by companies to the Ministry to raise prices of consumer goods.

The conditions, according to a report that Emirates Today obtained a copy of, include submitting requests on the ministry's website or smart application, submitting a report on current prices, in addition to a list showing prices during the previous three years, and a report on the prices of similar alternative products in the country.

The conditions also include submitting a report showing production costs for the previous three years, the company's budget for the last three years, as well as determining the percentage of the required price increase, submitting a comparative report on prices in neighboring countries, the countries of the Cooperation Council for the Arab Gulf States, and the company's justification for the price increase for the last time it was made. In which the price of the product is adjusted, and finally, verification of the company's knowledge of the measures taken regarding price increase requests.

The Ministry of Economy stated that it receives companies’ requests to raise prices, analyzes them, and takes appropriate measures and decisions regarding them, while informing companies of the final response.

She stated that the expected period for responding to companies is 15 days, noting that the service is available to all companies without exception, while requests can be submitted within 24 hours a day.

For his part, the retail affairs expert, Davy Nagpal, called for taking into account the importance of the commodity to consumers, and the existence of alternatives to it before approving requests to raise prices, stressing the importance of not agreeing to raise the price of the same commodity repeatedly and closely, and in large proportions, especially if it is a basic commodity that acquires on a percentage of consumer spending, and cannot be dispensed with, or find an alternative to it at the same level of quality and price.

Nagbal also demanded the existence of strict control mechanisms for sales outlets and the supplying and producing companies, so that the prices of goods are not raised without submitting official requests to the Ministry in this regard.

Nagpal stressed the importance of applying strict mechanisms to ensure that there are no harmful practices in the country's markets, especially monopolistic practices, or reducing the quantities of a commodity, as happened in other countries.

The Supreme Committee for Consumer Protection, during its meeting in November 2022, discussed the pricing policy for basic consumer goods in the country, which was developed by the Ministry of Economy in cooperation with its partners from the relevant federal and local authorities and the private sector, and is based on approving freedom of prices according to the principles of supply and demand, in a manner that guarantees balance and stability. Prices through the principle of competition and market mechanisms, with the exception of a group of consumer goods related to the basic needs of citizens and residents, for which merchants are obligated to obtain prior approval from the Ministry of Economy, before applying any price increases on them.

Among the most prominent of these commodities: cooking oils, eggs, fresh milk, rice, sugar, fresh chicken, legumes, bread, with determining the maximum profit margin for each commodity for suppliers or sales outlets.

The committee also recommended the formation of a permanent technical team of committee members to consider and decide on repeated requests for price increases, according to mechanisms and controls it previously established.

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