Business | Markets
Union Co-op cuts prices of basic commodities
Hypermarkets chain Union Co-operative Society announced on Monday it has slashed the prices of 30 basic commodities by at least 25 per cent from the purchase price, in observance of the holy month of Ramadan.
- By Cleofe Maceda, Staff Reporter
- Published: 15:53 August 25, 2008
- Image Credit:
Dubai: Hypermarkets chain Union Co-operative Society yesterday announced it has slashed the prices of 30 major commodities by at least 25 per cent from the purchase price, in observance of Ramadan.
The company, which operates seven outlets in Dubai, has allocated Dh10 million to absorb the loss resulting from the price cuts on chicken, rice, oil, milk, flour and water, among other food products. The cooperative's Ramadan budget for this year has dwarfed the Dh1.9 million allocated in 2007.
Ebrahim Abdullah Al Bahar, assistant general manager for Union Co-operative, said the special prices took effect yesterday and will be valid until the last day of Ramadan. Some of the items are now 35 to 40 per cent cheaper compared to last year's prices.
"These items are famous to our customers. We carefully selected them so that the needs of different nationalities are addressed. We started already at 8am this morning and we guarantee the consumers that all the time, for the month of Ramadan, the discounted items will be available," Al Bahar said during a press conference at the cooperative's head office in Al Aweer.
Tight watch
Al Bahar said the move is in response to the Ministry of Economy's recent announcement that it will keep a tight watch against price escalation during Ramadan.
It is also in line with the vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to "secure a good life for locals and expatriates in the UAE."
The UAE government earlier launched a country-wide campaign to prevent any possible manipulation of prices during the holy month. Some traders reportedly take advantage of the Islamic observance by increasing food prices.
Al Bahar said they are encouraging their competitors to follow their example in order to ensure that prices remain stable and consumers are protected against price manipulators.
The discounted items will be available in all the seven outlets operated by the Union Co-operative in Dubai. To discourage shoppers from hoarding, Al Bahar said they are limiting the sale of the basic items per consumer.
"We know a lot of grocery owners are going to come here so we advise consumers not to buy in bulk because we will not allow that. They should take only what they need," Al Bahar said.
"For example, a maximum of six Vimto bottles is allowed in each purchase. For a 2.5 kilogram Tang orange, only three cans are allowed, because that will be about seven kilograms in total. I don't think any family will be using more than 7 kilograms of Tang a month," Al Bahar added.
The cooperative has also adopted a direct import policy to avoid brokers and sub agents , and to find alternative product lines with high-quality products at reasonable prices.
Last March, the company agreed with the government to control the price of 16 basic food items, to help cushion the impact of the UAE's inflation, which hit a 19-year high of 9.3 per cent in 2006. Traders in the UAE have griped about the depreciation of the US dollar, as it made some imports more expensive.
Would this announcement encourage you to change your regular hypermarket of choice? Why? Do you think other retail outlets should make similar reductions in prices for Ramadan? Or are you satisfied with the regular promotions that are offered?
| Ramadan special prices at Union Co-Operative Societies | ||
| Product | Weight/Size |
Price (Dhs)
|
| Frangasul frozen chicken | 900 grams |
7.5
|
| Frangasul frozen chicken | 1,000 grams |
8.5
|
| Frangasul frozen chicken | 1,100 grams |
9.5
|
| Frangasul frozen chicken | 1,200 grams |
10.5
|
| Union chicken | 900 grams |
7.5
|
| Union chicken | 1,000 grams |
8.5
|
| Union chicken | 1,100 grams |
9.5
|
| Union chicken | 1,200 grams |
10.5
|
| Fresh eggs medium 30's | 12X30 |
10
|
| Union natural water (cups) | 36x200 ml |
7.5
|
| Union natural water (cups) | 48x125ml |
7.5
|
| Union Egyptian Sunflower oil | 4 litres |
26
|
| Union Flour (No. 2) | 10 kilograms |
16.5
|
| Union Flour (No. 1) | 10 kilograms |
17.5
|
| Al-Doha Egyptian rice | 5 kilograms |
15.5
|
| OKI oil | 10 litres |
49
|
| OKI oil | 2.1 litres |
11.75
|
| Nezo salt | 750 grams |
1.75
|
| Nezo salt | 1 kilogram |
1.25
|
| Smart Chef Thai Jasmin rice | 5 kilograms |
27.5
|
| Titanic Thai white rice | 10 kilograms |
45
|
| Hom Mali Jasmin rice | 5 kilograms |
37
|
| Union Macaroni Corni big | 2,400 grams |
1.95
|
| Union Vermacelli | 400 grams |
1.95
|
| Tang orange | 2.5 kilograms |
29.5
|
| Vimto | 710 ml |
4.5
|
| Abudhabi Harris | 40 kilograms |
75
|
| Greens Jelly (assorted) | 12x80 grams |
10
|
| Greens Custard powder | 450 grams |
2.5
|
| Nido | 2.5 kilograms |
65
|
Share this article
More from Markets
More from Business
Popular in Business
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
Business Editor's choice
-
UAE companies in full force at WTM
Seventy-eight participants are from Dubai and 50 from Abu Dhabi
-
DIFC committed to high standards
Ensures an efficient process to serve the business community
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
