Residents want cap extended to more commodities

Dubai: UAE residents welcomed a "long awaited" move by the Ministry of Economy to put a ceiling on some essential food items, but expressed concerns about the possible negative effects of such a move.

Zaima Mustafa, an Omani national, welcomed the price caps set by the ministry on food items, but said they should be extended to other items as well. "Everything from red meat, to detergent and bread has gone up in price. There should be a maximum price for those too."

Zaima said supermarkets could find alternative ways to cut costs in order to maintain high profits. "I'm not convinced by the argument that a price ceiling can affect the quality of food sold," she said, adding that other means of encouraging supermarkets to keep their prices low could be thought of too.

Asif Iftikhar, a Pakistani national, 30, said that the rate of the rise in the cost of essential food items called for official intervention. "Some of us might be able to afford expensive food, but there are always others who feel the effect of the price rise more," he said, adding that his own grocery bills went up by fifty per cent since last year.

Although supporting price controls, Iftikhar said the situation would change if setting price ceilings meant there would be a shortage of essential food items. Supermarkets, he said, should not be expected to make a loss.

"We shouldn't force them to sell items if they are going to lose, but they should be asked to reduce prices even down to the cost price if necessary," he said.

Regarding the quality of food being affected by the price ceilings, Iftikhar said that a consumer's primary concern was the availability of food at an affordable price. "Quality of food comes second," he said, adding that better quality of food should be available to those who can afford it.

Vincent, a Filipino national, said price increases since last year had less to do with inflation and more to do with profit maximidation. Although he was in favour of price controls, he said a possible resulting shortage could be counterproductive.

"Perhaps a middle ground can be reached between the government and supermarkets, where supermarkets can still make a profit without exploiting the customer," he said.

Price controls should not be disregarded, said Vincent. "There should be a trial period to assess the effect of the new prices first," he said.