MoE allows 5% rise in Nido milk price

Dubai: The UAE Ministry of Economy (MoE) has approved a five per cent rise in the cost of Nido milk amid moves by various importers to hike prices of essentials as spiralling costs are hurting their bottom line.

The ministry also warned against an increase in the cost of animal feed as it would lead to a rise in poultry and meat prices - and also affect the cost of milk production.

The meeting discussed a study by the MoE on the increase in the cost of animal feed price.

"The study pointed out that the increase of prices will lead to an increase in poultry and meat products and that no lobbying or monopoly was found out on that issue that contradicts with laws of the country. During its discussions, the committee also declared that the five per cent increase in price of Nido milk was justified," the statement said.

The same executive committee also turned down a request by Al Sinnara Rice supplier company to increase the price, saying it was unjustified.

Earlier, the committee set the limit of 20 per cent increase of prices of bread raw material and left it to each emirate to decide on a rise - but not more than 20 per cent.

Companies in the UAE are trying to push up prices to adjust to the rising inflation which is reducing profitability.