Dairy and juice firms warned

Abu Dhabi: The Ministry of Economy yesterday warned major dairy and fruit juice companies that unless they retract their price hike demands they will face tough action.

"Legal action will be taken against companies which fail to abide by the current prices in accordance with article 18 of the Federal Consumer Protection Law No 24/2006," a statement issued by the Consumer Protection Department said.

The move came after a number of major dairy and fruit juice companies have demanded price increases of up to 33 per cent from next month.

The statement dismissed the monopolistic practices as "harmful to consumers and the national economy" and said monopoly was ensured through lobbying and implicit agreements among dairy and juice products companies.

The statement named six companies, which illegally sought to hike prices: Al Marai Company, Al Ain Dairy Company, Al Rawabi Dairy, Mohamed Abdullah Al Othman Trading Corporation and Gulf Dairy and Safa Company.

These companies have demanded price hike of between 7 per cent and 33 per cent, Ebrahim Al Bahar, Assistant General Manager of Union Coop, told Gulf News yesterday.

Turned down

Al Bahar added that these companies sent official letters to coop societies on March 12, with Al Rawabi and Nada dairy companies demanding that the price increase take effect from April 1, while other companies from mid-April.

Turning down the price increase, the Union Coop has submitted these requests to the Consumer Protection Department at the Economy Ministry, according to Al Bahar.

Ezzedine Abdul Majid, manager of the Consumer Cooperative Union, said that the union will have a stand on the price hike demanded by dairy companies by the end of this week.

Amal Mohammad Ahmad, a housewife shopping at Abu Dhabi Coop Society, said such hikes are unjustified. "If you compare prices of dairy products in the UAE with Saudi Arabia or Oman, it is extremely costly here."

She added a price hike attempt was a shock to her family budget. "Dairy products are essential items and consumed on a daily basis. This hefty hike, if approved, would leave a big hole in our pocket. Such hikes should be discouraged by the authorities," Amal said.

Dr Ahmad Al Tijani, general manager for the Al Rawabi Dairy Company and chairman of the UAE Dairy and Juices Association, said the association did not take a decision to increase the prices.

"It was a decision taken by individual companies but not at the association's level," he said.

The authorities should not encourage the diary companies to increase the price. Already the prices of most household items have been increased. This will affect middle class budget. How can people survive these price hike on all items?
Reena
Sharjah,UAE

I commended the action of the Union Coop to make a stand on hike in basic commodities. Many countries world-wide have a price policy where increases cannot be made on basic commodities and commercial organisations like these do not seem to understand the impact they make on society and families if this increase is to take place. I truly hope the government will look into this and enforce a standard where both an organisation and people residing in the nation shall both be happy.
J. Rebeiro
Dubai,UAE

It is nice to see this swift reaction to the suggested price increase. I would like to see that happen to other products and not just dairy products.
Ali
Al Ain,UAE

It is true there are price hikes all over the world, particularly in the case of milk products. However, advanced planning by dairy firms can avoid major price increase, while a gradually increase will help consumers to absorb the resulting price increase.
T. Aziz
Dammam,Saudi Arabia UAE

There is no justification to increase the price of daily used products. The authorities should not encourage this type of increase.
R. Fernandes
Dubai,UAE

the government should take care that prices of such kind of products are controlled as it is nessary for children. The companies should not be allowed to hike the prices as is the case in other Gulf states where such products are economical.
S. Ahmed
Sharjah,UAE

This would be extremely unfair to children, who would love to have a glass of juice/milk on a daily basis. They will be deprived of having juice and dairy products as parents will start economising to stay within their monthly budget.
Rohan
Dubai,UAE

Yes, the hike in price of such essential commodities should be curbed by strict policies. With increase in rent and above all basic necessities it's really not going to be feasible for a common man to survive. We would appreciate if strict actions are taken at the earliest.
. D'souza
Dubai,UAE

Price hike in dairy products are very harmful for consumers. In Saudi Arabia, the prices of these products are very low but in the UAE, it is very high.
M.A. Aleem
Dubai,UAE

As the standard of living in Dubai is very high, it is unfair to increase prices on dairy products which is the basic need of everyone.
Nazia
Dubai,UAE