Sharjah retailers warned on prices

Food retailers violating price caps have been warned by officials at the Ministry of Economy after raids in Sharjah.

Hashim el Nuaimi, the director of the Emirates Society for Consumer Protection, inspect prices at the Sharjah Co-Operative Supermarket.

SHARJAH // Food retailers violating Government price caps have been warned by officials at the Ministry of Economy, following a swoop on markets and supermarkets in Sharjah yesterday. Supermarkets and stallholders in the emirate were given official warnings that they risked fines or closure if they failed to abide by the price caps.

This follows an announcement by the Government that it would strictly enforce regulations during the month of Ramadan. Last week, the same delegation, led by Hashim el Nuaimi, the director of the Emirates Society for Consumer Protection, carried out checks in Abu Dhabi and Dubai. "We want to make sure that the price caps that we agreed upon as a goodwill gesture are enforced," said Dr Nuaimi. Officials with the ministry would continue visiting various retail outlets throughout the month, he said.

"We are co-ordinating between the Ministry of Economy and the individual municipalities on the issue of price hikes, and we are working to tackle this issue." Officials toured shops at Sharjah's old fruit and vegetable market and the adjacent meat market, as well as larger supermarkets, including the Sharjah Union Co-operative Society, Carrefour and Lulu hypermarkets. Earlier this year, the Government signed agreements with various domestic retailers - including Baniyas Co-operative Society, Carrefour, Union Co-operative Society and Lulu hypermarkets - for implementing price caps on items such as chicken, rice, flour and eggs in an effort to combat rising prices.

At the Union Co-operative Society, officials looked for violations on products priced above the government-designated ceilings, as well as for those that were not labelled in English and Arabic, or for those that had no label at all. Store clerks scurried about anxiously, carrying stacks of Al Reef eggs, which at Dh18 (US$4.90) per carton, violated the Dh17 ceiling, and crates of powered milk that bore no label.

"How can you expect the consumers to trust you when you do not label the item?" said Dr Nuaimi, questioning the store manager. Retailers were issued warnings on this initial visit. Dr Nuaimi said that another violation would result in fines of between Dh5,000 for private vendors to more than Dh10,000 for major supermarkets. Further violations would result in legal action and even store closures, he said.

"We ask for the utmost co-operation from outlets so that we can enhance the trust between consumers and retailers, particularly during the holy month of Ramadan," Dr Nuaimi said. In recent months, volatile oil prices have led to higher commodity prices and consumers are feeling the brunt. According to the latest price index released yesterday by the Ministry of Economy, one kilogram of Emirati-grown short cucumbers now costs Dh3.95 at the Sharjah Union Co-operative Society, an increase of Dh2 from its price in April. At Carrefour in Sharjah, white bread is now Dh1.95, up from Dh1.70 in April. At the same supermarket, two kilograms of locally packed white sugar has also jumped from Dh3 to Dh4.35.

Food inflation is foremost among concerns of the Federal Government, which reported a 10.7 per cent jump in inflation last year driven by higher rents, transport and food costs. According to the Emirates Society for Consumer Protection, food domestic inflation could rise as high as 40 per cent this year. Many vendors at Sharjah's old fruit and vegetable market were critical of the Government's efforts, saying it was cracking down on the wrong people.

"Wholesale prices are becoming so expensive that it is difficult for us to make money these days," said Mahmoud Ibrahim, an employee at the Shams al Aseel vegetable store. "They should really fine the wholesalers. We cannot control the prices, but they can." A vendor at a neighbouring vegetable shop agreed, saying that the burden was becoming too great to bear. "Between the gas money I spend to buy my products from Al Awir wholesale market in Dubai, and then the high prices they make for the vegetables, I cannot make very much money now," said Hameed Mohammed, the owner of But Afrah Vegetable shop.

Dr Nuaimi acknowledged the retailers' complaints and said his office had scheduled a meeting with the country's leading wholesalers to find a solution. In the meantime, the Government has set up a hotline for complaints relating to price violations. Consumers can call the ministry hotline at 600522225. [e-mail]