UAE | General
Will affect majority of UAE population
The prices of three essential commodities are set to rise soon, putting pressure on residents once again.
- By Binsal Abdul Kader, Staff Reporter
- Published: 23:06 October 16, 2007
- Image Credit:
- The latest price rise is likely to affect the majority of the UAE population who have already been suffering from high inflation, officially put at 9.3 per cent.
Abu Dhabi: The prices of three essential commodities are set to rise soon, putting pressure on residents once again.
Suppliers have given notice to retailers to increase the price of certain brands of non-basmati rice, wheat flour and milk powder, according to industry officials.
The price of non-basmati rice is to go up by 10 to 25 per cent due to the shortage of non-basmati rice from India following an export ban imposed by the Government of India, said suppliers and retailers. "There is a shortage of non-basmati rice in the market following the ban as Indian non-basmati rice constitutes about 50 per cent of the market share," said a prominent supplier.
"Wholesale prices of non-basmati rice from Thailand have gone up by about $100 [Dh367] per tonne. So the retail prices may go up by about 10 to 25 per cent soon," said R.S. Shashi Kumar, sales manager, Al Rabiah Trading Company, Dubai.
The latest price rise is likely to affect the majority of the UAE population who have already been suffering from high inflation, officially put at 9.3 per cent. This comes on top of a silent price increase of European goods due to the UAE dirham, which is pegged to the US dollar, losing value.
Prices of Indian products are also likely to increase in the coming months due to the appreciation of Indian currency, analysts say.
The Government of India banned exports of non-basmati rice last week to procure and maintain sufficient stock in the country and to keep rice prices stable, according to Indian media reports.
"The Government will review the decision after the rice season," Sharad Pawar, minister for Agriculture and Food told the Press Trust of India.
Retailers said they are already under pressure as suppliers have stopped promotional offers for rice brands.
"We used to adjust the retail prices by utilising the discounts given by suppliers but the changed situation puts heavy pressure on retail prices," said Abdul Nazer Thayal at the Al Safa Supermarket, Abu Dhabi.
Some retailers said they had already received notices from suppliers to increase the price."A prominent non-basmati brand supplier has demanded about a 20 per cent increase in prices and we will be compelled to accept it soon," said a manger of a prominent retail chain in Dubai.
Major suppliers of wheat flour have given notices to retailers to increase the prices with effect from today, said retail sources.
"Almost all major suppliers have given notice to increase the price by 35 to 40 per cent," said a manager of a prominent retail chain in Dubai.
"The price for a 50 kilo bag will be increased to Dh110 from Dh80 and from Dh17 to Dh23 for a 10 kilo bag. It seems all suppliers have made an agreement," he said.
Industry officials said the two most prominent milk powder brands have also given notice to increase their price by 20 to 25 per cent effective from November 1.
"The price for a 2.5 kilo pack of a milk powder of a prominent brand will be increased to Dh64 from Dh54. Other brands will follow suit as soon as the prominent brands make the new price effective," said the manager of a prominent retail chain.
"A price rise of three essential commodities will compel me to sacrifice other comforts to cope with my family budget," said Mohammad Hussain, an Abu Dhabi resident.
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