Government to fix prices of 800 commodities during Ramadan

Dubai: The UAE will fix the prices of 800 basic commodities during Ramadan so that consumers can afford to fill their plates when they end their daily fast.

Consumer Protection Department (CPD) Director Hashem Al Nuaimi told Gulf News that inspectors will visit supermarkets all over the country to ensure they are complying with the new regulations.

Al Nuaimi added that the CPD will publish the prices of the 800 items on its website to allow consumers to check that they are not being overcharged.

"The move is part of a wider awareness campaign to educate people against price manipulation and hoarding of food during the month," he said.

"We have agreed with all concerned parties to work together to avoid any manipulation of prices, and we have already established teams to work with the ministry's offices in each emirate and closely monitor the sale of meat, vegetables, fish and chicken at all major retail outlets."

Rush purchases

He added that the department had also launched an awareness campaign to dissuade customers from making rush purchases.

"We will also coordinate awareness campaigns before and during Ramadan to inform consumers on the availability of commodities. This is to avoid the tendency to make rush purchases before and after the month," said Al Nuaimi.

Meanwhile, the Ministry of Economy (MoE) has warned suppliers they will face legal action if prices of basic foodstuffs are hiked.

"The MoE has instructed price supervision committees formed by the ministry office in each emirate and other local authorities to conduct field visits around the clock," he said.

"We are keen to place controllers in fruit and vegetable markets to prevent monopolies and any price manipulation and to ensure the implementation of the relevant federal laws."

During Ramadan, which is likely to begin on August 1, consumer spending on food items increases.

"The UAE has expanded the initiative to fix prices on more products after encouraging lower prices for the first time last year," Al Nuaimi said.

He added that the UAE fixed prices of some basic foodstuffs last year at levels to curb inflation and that there were no complaints.

He said the government had encouraged importing foodstuffs to meet the rise in demand during Ramadan.

Simon Williams, chief economist at HSBC, told Gulf News that price reductions can be effective for the short term, but not in the long term. "Any restrictions on prices can be on the short run; however, on the long run, supply and demand will play their role to settle this matter," Williams said.