Business | Markets
60 food licences cancelled over monopoly fears
The Ministry of Economy has cancelled 60 commercial agency agreements for basic foodstuffs, to break monopolies in the sector and reduce food price-related inflation, which economists say will be the single biggest public concern this year.
- By Ahmed A. Elewa, Senior Reporter
- Published: 00:37 March 5, 2008
Abu Dhabi: The Ministry of Economy has cancelled 60 commercial agency agreements for basic foodstuffs, to break monopolies in the sector and reduce food price-related inflation, which economists say will be the single biggest public concern this year.
The UAE imports about 85 per cent of its food.
"The ministry applies disciplinary measures, including fines that can go up to Dh15,000 in some cases," Dr Hashem Al Nuaimi, director of the ministry's Consumer Protection Department, said on Tuesday.
"The fine is [just] a stage of a process which proceeds by a warning, then imposing fines, up to more severe measures such as suspension or closure of the establishment and taking the matter to the UAE courts.
"From March 29, all imported foodstuffs must bear Arabic labels detailing the item and the entry of any food product that does not comply with this will be prohibited," he said.
Steps needed: Inflation to hit 40%
Gulf states have been trying to cope with rising inflation by undertaking different measures.
"The inflation rate of food prices in the UAE was around 30 per cent in 2007 and could touch 40 per cent in 2008," Dr Jamal Al Saeedi, director of the Emirates Consumer Protection Society, said.
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