Q&A: UAE trying to dampen food prices

Contrary to the increase in food prices so far this year, the UAE Ministry of Economy has been actively trying to keep a lid on food costs to contain overall inflation in the economy.

The UAE Ministry of Economy (MoE) has been trying to keep a lid on costs to contain overall inflation in the economy.

The Consumer Protection Department at the MoE has been trying to dampen increases in the price of basic foods and household commodities. Retailers, restaurants and food and beverage outlets have had to request a price increase and prove they are being squeezed by suppliers in order to gain approval.

q&a

q Didn't retailers also agree to lower or fix the price of hundreds of foods last year?

a Yes. A number of retailers, including LuLu, Carrefour, Spinneys, Fathima [Supermarket] and the Cooperative Societies, agreed last May to lower or fix the prices on about 400 basic foods until the end of last year.

q Have these prices continued to be kept low this year?

a There has been no official announcement, but some retailers, such as Fathima, have agreed to keep prices low. The MoE introduced an online monitoring system, where retailers, suppliers and importers have to input their prices weekly.

q Was there also an issue with prices of cans of Coca-Cola and Pepsi?

a Both Pepsi and Coca-Cola are permitted to sell 300ml cans in restaurants and hotels, and retailers have to sell 330ml cans of Coca-Cola and 355ml cans of Pepsi for Dh1.50. A number of retailers were caught earlier this year selling 300ml cans and the MoE threatened to remove the smaller size from the market in a bid to protect consumers.

q Given the active involvement of the MoE in the market, why have food prices increased in the first two months of the year?

a Globally, the prices of basic food commodities have risen to record levels in the past 18 months. Although the prices have come down, they are still at inflated levels.